The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
May 2024
In May, bond markets have been in somewhat of a risk-on mode, with interest rates and spreads trending lower. Inflation rates, it seems, are continuing their downward trend in European economies, which helped renew the hopes for interest rate cuts this year. Still, there is a fear of recession looming, which would be consistent with both lower inflation and lower interest rates. However, at least so far, we can not detect any meaningful signs of a recession. On the other side, earnings and earnings estimates have been rising, which might explain the tightening corporate spreads and an exuberant stock market in May. This is good news for bond investors, inasmuch as it should help to keep default rates in check. (...)
