Monthly report September 2021 - HYOF

High Yield Opportunity Fund continued to deliver good returns during September with a monthly result of plus 0.95 %, and a total of 5.04 % during the first 9 months of the year.
I consider it entirely possible to reach a target return of 7% for the full year 2021.
There is still a shortage of material in the primary market and high demand in the secondary market.
The market expects that there will be new issues during the last quarter of 2021, which may increase supply slightly.
Credit spreads performed well during the stock market and interest rate turbulence at the end of September, which was primarily driven by increased inflation expectations in the US, which in turn pushed up long-term interest rates and down stock markets.
Regarding Evergrande in China, it has had a marginal impact on credit paper in the Nordics.
In general, there is concern in the market about inflation in the US, higher energy prices in the world, and a shortage of semiconductors.
I assess that we will continue to have a good market and that we will achieve our target of 7% return for the full year 2021.