Monthly commentary Pareto ESG Global Corporate Bond
unchanged across the curve month on month.
On the geopolitical side, the highlight of the month was the election in Germany. CDU/CSU, led by Friedrich Merz, declared victory reaching around 29% and is expected to form a majority together with SPD. Key focus for the new government will be to implement pro-growth supply-side reforms, ease the regulatory and tax burden for businesses, and pursue a less costly energy policy. In addition, increased defence spending and loosening of the German debt brake will also be on his priority list. On a broader European level, Merz is also set to take the leading role in shaping Europe’s future, positioning himself at the forefront of the EU’s economic and political direction.
In the primary market, the activity was a bit calmer during the month than in January. Despite the slower activity, the fund participated in three new deals, Scatec, Landsbankinn and Gen Digital. Scatec is a known name for the fund and the company did a green 4-year NOK floating bond, priced at NIBOR + 315bps, which we decided to take part in. The other issuers are new in the fund. Landsbankinn is a government owned Icelandic bank that issued a US dollar AT1 bond that landed at a yield of 8.125%. Gen Digital is a leading global company in the cybersecurity industry that issued a $950 million bond at a yield of 6.25%.
Portfolio management team
Philip Lindgren
Portfolio manager
Read our latest monthly reports
Pareto ESG Global Corporate Bond
Pareto Nordic Corporate Bond
Pareto Nordic Cross Credit
Pareto Global
Pareto Aksje Norge
Pareto Nordic Equity
Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on, market developments, the portfolio manager’s skill, the fund’s risk profile, as well as fees for subscription, management and redemption. Returns may become negative as a result of negative price developments. This is marketing communication.