Nordic high-yield bonds can offer diversification, lower duration and limited volatility
The Nordic high-yield bond market has grown significantly in recent years to about 15% of the European market. Anna-Karin Hempel, a Senior Portfolio Manager in the Fixed Income team at Alfred Berg, part of the BNP Paribas Group, points out to Chris Iggo, a member of the Investment Insights team at BNP Paribas Asset Management, that the Nordic region is politically, socially and economically stable – a big positive for industries and companies.
Originally, issuers were mainly oil-related and shipping companies, but Nordic high yield is now much more diverse and more international, both at the issuer and investor levels. “It's been one of the best performing markets since interest rate hikes began in 2022, beating both equity indices as well as the European and US high-yield markets, with materially lower duration and limited volatility.”
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