The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
September 2024
Interest rates in the Nordics have continued their contraction, largely following the same development as in the major currency areas. While it seems clear that the peak of the recent interest cycle is well behind us, doubts are emerging as to the path forward. The apparent market consensus is that central banks will continue their lowering cycle on the back of low inflation numbers. Some indicators suggest that the economic situation is not as bad as it seemed until recently. A stronger-than-expected economy might lead central banks to pause their interest rate reductions, if not reverse their course. At least, the Fed’s latest guidance of another 50 bps rate cut this years followed by 100 bps in 2025 seems too ambitious by now.
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