The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
October 2024
Following several months of contraction, interest rates have been rising this month in Norway and in Sweden. The impression is that markets are expecting a pause in the current rate cycle. Markets may even be considering a hike by Norges Bank in early 2025 on the back of inflation rates in Norway trending up again. Norges Bank and NOK developments are more in line with the US, while the SEK-course is more in line with EUR-developments. Positive market sentiment has been keeping credit spreads at new long-term lows, with Nordic High-Yield spreads reaching 413 basis points. This coincides with a positive Norwegian equity market for this month again, which stands out against negative performances in all surrounding markets. For equity investors, this marks a welcome diversification to otherwise weaker Nordic and global markets.
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