The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
Pareto Bond Funds - September update
In September, the Federal Reserve cut its policy rate by 25 basis points to a target range of 4.00% to 4.25%, marking its first rate cut in 2025. The market expects two additional cuts before year-end. Both the Norges Bank and Riksbanken in Sweden followed suit cutting their interest rates at their respective meetings in September to 4.00% and 1.75%, respectively. In Norway and Sweden, longer-term interest rates rose slightly following the decisions. As with the Euro, where the ECB kept interest rates unchanged, markets are anticipating interest rates in Norway and Sweden to remain stable for the remainder of the year, owing to the persistently high inflation rates. Investment returns for bonds in the Nordics will thus focus even more on carry and spread development.
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