DNB Asset Management S.A.

Nordic High Yield – 5 reasons to invest in 2020

The year is drawing to an end and it is time to take stock of developments in the Nordic high yield market and look at opportunities and threats for 2020. 2019 has been a year of relatively stable credit spreads in the Nordic high yield market. As a result we see that the returns in many of the Nordic high yield funds are quite close to the stated yields of the funds at the start of 2019. Stable credit spreads is generally a good thing for long term performance but in a year in which high yield spreads both in Europe and the US have tightened considerably we have seen that Nordic high yield funds in general have underperformed their European and US counterparts. So, given these developments what are the main reasons to invest in this marketplace in 2020.

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