Månadsrapport augusti 2021 – HYOF

Monthly report August 2021 – HYOF

The Nordic HY market has developed well during August with a demand-driven spread in the SEK and NOK market.

The EUR and USD market has been more neutral, but USD HY has performed better in the last week in line with better stock market trends. The SEK and NOK market suffers from a lack of material in the primary market as there have only been a few issues so far (Walenius Wilhemsen (NOK), Trym AS (NOK), 24Storage (SEK), Dooba Finance (SEK), Ilja Batljan Invest (SEK), Genova Property (SEK), Axactor (EUR), DNO (USD).

Many investment funds have had inflows during the summer and need to use their cash, which has meant that they have looked for bonds to invest in from the secondary market, which pushes the spreads in SEK and NOK together.

Several banks say that there is a good pipeline for new issues of HY bonds going forward and the market will swallow that easily given the good sentiment in the market. The lack of alternative investments means that those who think the spreads have narrowed too much buy anyway.

Attaches a graph of how Dentalum's (yield) and SIBS (spread over stibor) issue in SEK have developed during the year. Completely driven by a lack of material, and if it is also non-Real Estate, it is very difficult to find material. If you also spice it up with a green framework, the demand becomes hysterical.

High Yield

Source: Bloomberg

High yield spread

Source: Bloomberg