Monthly report October 2021 – HYOF

HYOP continued to deliver good returns during September with a monthly result of plus 0.40 %, and a total of 5.46 % during the first 10 months of the year.

I consider it entirely possible to reach a target return of 7% for the full year 2021.

October has been the most turbulent month in a long time in global fixed income markets and there are also divided opinions about inflation expectations.

The Riksbank's interest rate path shows an unchanged key interest rate for several years to come, but now an increase of about 25 basis points is discounted in 2022 and a further about 30 in 2023, which means

higher short-term interest rates and thus also flatter yield curves.

Energy prices and shortages of electricity, as well as high freight prices, are fueling market unrest, which has also created some concern in the stock market.

During October, the stock market shook off some of the concerns about stagflation, energy shortages and supply disruptions – the S&P 500 rose by 7.01% and the OMXS by 5.11%.

Credit spreads widened marginally in the high yield segment.

The market expects that there will be new issues during the last quarter of 2021, which may increase supply slightly.

Jan Lundquist Manager HYOP