The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
Pareto Bond Funds - Update
Nordic markets have been diverging in February, on both the bond and on the equity side, respectively. The Riksbank and the ECB have lowered their policy rates by 25 bps, while Norges Bank has held steady during the month. And while interest rate markets on the short end were little changed in both EUR and in SEK, the 2-year rate in NOK has come down by 36 bps to 3.61% - a clear indication that the market believes Norges Bank will have to follow suit, soon. Swedish inflation came in significantly higher than in Riksbank’s forecast, which raises questions about further cuts in the key interest rate. Nevertheless, the market is pricing in a 50% probability of a 0.25 percentage points lower key interest rate before the summer. Overall, Norwegian bond markets were still optimistic with high-yield spreads near historical lows, and new issuance continuing to be at high levels.
(...)
