Marketable Securities

6 Months Ended

Jun. 30, 2021

Categories of current financial assets [abstract]

Note 8—Marketable Securities

Marketable securities are measured at amortized cost, and fair values are determined based on quoted market prices (Level 1 in the fair value hierarchy).

The composition of the portfolio is specified in the following table


	June 30, 2021				December 31, 2020
	Carrying amount		Fair value		Carrying amount		Fair value
	(EUR’000)
Marketable securities
U.S. Treasury bills		—		—		46,243		46,245
U.S. Government bonds		85,049		85,049		62,088		62,101
Commercial papers		8,832		8,833		10,583		10,581
Corporate bonds		144,830		144,734		121,282		121,234
Agency bonds		18,076		18,077		9,362		9,369

Total marketable securities		256,787		256,693		249,558		249,530

Classified based on maturity profiles
Non-current assets		90,693		90,623		115,280		115,277
Current assets		166,094		166,070		134,278		134,253

Total marketable securities		256,787		256,693		249,558		249,530

Specified by rate structure
Fixed rate		231,342		231,249		175,757		175,732
Floating rate		16,613		16,611		16,975		16,972
Zero-coupon		8,832		8,833		56,826		56,826

Total marketable securities		256,787		256,693		249,558		249,530

Specified by investment grade credit rating
Prime		6,398		6,398		7,716		7,714
High grade		127,690		127,678		142,339		142,352
Upper medium grade		119,785		119,706		99,503		99,464
Lower medium grade		2,914		2,911		—		—

Total marketable securities		256,787		256,693		249,558		249,530

The Company’s marketable securities are all denominated in U.S. Dollars. At June 30, 2021, the portfolio has a weighted average duration of 6.6 and 17.5 months, for current and

non-current

positions, respectively. The entire portfolio has a weighted average duration of 10.4 months.

All marketable securities have investment grade ratings, and accordingly, the risk from probability of default is low. The risk of expected credit loss over marketable securities has been considered, including the hypothetical impact arising from the probability of default which is considered in conjunction with the expected loss given default from securities with similar credit ratings and attributes. This assessment did not reveal a material expected credit loss, and accordingly, no provision for expected credit loss has been recognized.