The mortgage industry of Denmark provides borrowers with flexible and transparent loans on conditions close to the funding conditions of capital market players. Simultaneously, the "covered mortgage bonds" transfer market risk from the issuing mortgage bank to bond investors. Lastly, strict property appraisal rules, credit risk management by the mortgage banks, and tight regulations including the so-called 'balance principle', have also historically shielded mortgage bonds from default risk. High industry concentration and automatic stabilizers also play a role in maintaining stability.