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.<\/p>\n
I consider it entirely possible to reach a target return of 7% for the full year 2021.<\/p>\n
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.<\/p>\n
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<\/p>\n
higher short-term interest rates and thus also flatter yield curves.<\/p>\n
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.<\/p>\n
During October, the stock market shook off some of the concerns about stagflation, energy shortages and supply disruptions \u2013 the S&P 500 rose by 7.01% and the OMXS by 5.11%.<\/p>\n
Credit spreads widened marginally in the high yield segment.<\/p>\n
The market expects that there will be new issues during the last quarter of 2021, which may increase supply slightly.<\/p>\n
Jan Lundquist Manager HYOP<\/p>\n