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The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.

February 2024

Against the backdrop of slightly rising interest rates, high-yield spreads in the Nordic markets have come down considerably. With equities rising too, markets seem to have swung into a veritable "risk-on" mode. If we consider that many yield curves have been inverted for quite some time now, and other indicators have been signaling a recession, too, we must conclude that the market has stopped trusting the usual indicators.


With markets moving ahead, the room for interest rate cuts seems a lot smaller now than it did a couple of months ago. Markets seem to be reducing the number of expected cuts this year. Additionally, Norges Bank is even less likely to cut, in order to stabilize the NOK exchange rates. This is supportive for floaters and shorter durations.

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