Last Week Saw Strong Bid For High Yield Bonds

Published 04/15/2015, 12:42 AM
Updated 05/14/2017, 06:45 AM

Last week saw a strong bid for high yield bonds as evidenced by a significant tightening in the DBM Nordic HY index of some 14bp.

Strong corporate credit fundamentals and robust appetite for riskier assets driven by the hunt for yield continue to push spreads tighter and funding rates lower.

Following client feedback, we have revised Danske Bank Markets' indicative Nordic high-yield index. The index now includes 103 cash bonds (vs 38 previously) and 68 Nordic issuers. The market cap of the companies increases to some EUR27bn (vs EUR16bn previously).

Crossover trade idea launched: Buy the Akelius SEK March 2019 bond.

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