Monthly report October 2021 – HYOF

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

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

October has been the tumultuous month in a long time for global fixed income markets and there are also divided opinions on inflation expectations.

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

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

Energy prices and a lack of electricity as well as high shipping prices are fueling the market's anxiety, which has also created some anxiety in the stock market.

During October, the stock market shook off some of the worries about stagflation, energy shortages and supply disruptions – the S&P 500 rose by 7.0% and the OMXS by 5.1%.

Credit spreads widened marginally within the high yield segment.

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

Jan Lundquist Manager HYOP