Why the Nordic bond market is worth a closer look

In a recent market assessment, Svein Aage Aanes, Head of Fixed Income and FX at DNB Asset Management, points out why the Nordic bond market is worth a closer look. There is the potential for attractive returns with Nordic high-yield bonds, opines the Norwegian asset manager.

“We are in a transition from rate hikes to rate cuts – and in such phases bonds tend to perform strongly. As central banks grow comfortable with the stabilisation of inflation, they are likely to take their foot off the monetary policy brake a little, but without switching to an expansionary monetary policy,” says Aanes.

Both Sweden and Norway are expected to cut interest rates this year, with Sweden probably moving first in the second quarter, as per DNB’s Head of Fixed Income.

“In terms of the bond market, the still young year has started strongly on the issuance side – and this trend is expected to continue,” says Aanes.

Read the full insight here.