The macroeconomic situation provides a mixed picture for credits in 2016.
We expect spreads to widen in all rating categories over the year.
We prefer domestically oriented sectors that benefit from the strong Swedish economy and low interest rates. We remain cautious on sectors exposed to commodity prices and emerging market weakness.
Top picks: On a relative value basis, we find value in the following.
Investment-grade corporates - Swedish Match, Tele2, Wallenstam, Sveaskog, Daimler.
Investment-grade senior financials - GE, Larger Danish banks, BPCE, Aktia.
X-over and hybrids - Akelius, TVO, Balder.
BB - Com Hem, Millicom, Klövern, Kungsleden.
B - Jefast, SAS.
To read the entire report Please click on the pdf File Below