Monthly report September 2021 – HYOF

The High Yield Opportunity Fund continued to deliver good returns during September with a monthly result of plus 0.95 %, and in total during the first 9 months of the year 5.04 %.
I consider it entirely possible to reach the target return of 7% for the full year 2021.
There is a continued shortage of material in the primary market and great demand in the secondary market.
The market expects that there will be new issues during the last quarter of 2021, which may increase the supply somewhat.
Credit spreads fared well during the stock market and interest rate turmoil at the end of September, which was mainly driven by increased inflation expectations in the US, which in turn drove long-term interest rates up and stock markets down.
Regarding Evergrande in China, it has had a marginal impact on credit securities 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 goal of 7% return in the full year 2021