The Swedish high yield market has been in a growth phase for most of the years since the financial crisis, partly driven by increased regulation on banks. According to statistics from Nordic Trustee’s Corporate Bond Market Report 2023, the size of the Swedish corporate high yield market was EUR 15.7Bn at the end of 2023.
Corporates in the below BBB- segment have continued to find attractive financing in the bond market, meanwhile investors in the bonds have stood without any independent relevant benchmark representing the overall Swedish high yield market’s composition and performance.
We are excited to announce the launch of NBP’s new NBP Swedish HY Aggregate Index (“SEHY”), an index product we see having the potential to fill the gap and lack for a representative benchmark index.
Patric Björk Andersson, business developer with Nordic Bond Pricing, comments:
“Swedish high yield credit exposure has risen sharply among investors over the last couple of years. Yet, most high yield funds and discretionary mandates have had to rely on and refer to banks’ proprietary unofficial market indices for reference, if not official European credit market benchmarks.
With this new Swedish high yield index we want to deliver an independent official credit index product that the market can adopt as “the market index” in the Swedish domestic high yield market. Sweden’s high yield market gives an attractive return, forms a perfect exposure in many multi-asset portfolios, and professional investors should be interesting in adopting the best practice of using an official benchmark index for evaluation of their performance.
We are of course curious to find out how this will be received by market participants, but we anticipate funds but also wealth managers and private bankers will find this new index very useful.”
For more information about the new index, please contact us at: info@nordicbondpricing.no
About Nordic Bond Pricing
Nordic Bond Pricing was founded by Nordic Trustee ASA and the Norwegian Fund and Asset Management Association (VFF) in 2013 with the aim to provide independent valuation services to the Norwegian investment and asset management community. Nordic Bond Pricing was approved as Benchmark Administrator by the Norwegian Financial Supervisory Authorities in April 2021 and publishes a broad selection of government, investment grade and high yield indices.
For more information about Nordic Bond Pricing’s index services, please visit www.nordicbondpricing.no/indices and www.nordicbondpricing.no/regulations.