- Advertisement -
- Advertisement -

Related

Corporate Bonds are Very Attractive Finds Atlant Fonder

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – This year’s broad sell-off in the bond market due to aggressive monetary tightening in the fight against inflation may have investors take a look at the asset class again. With corporate bond yields reaching levels unseen in years, one can finally find some income in the fixed-income market.

“Today, interest rates in the corporate bond market are at levels we have not seen for many years, after a turbulent year in which many corporate bonds lost significantly in value,” Taner Pikdöken, portfolio manager at Atlant Fonder, tells Privata Affärer. “After this year’s turbulence, corporate bonds are once again a very attractive asset class,” he continues. “It is relatively easy to put together a diversified portfolio of corporate bonds issued by large and solid companies that can be expected to return 8-12 percent a year, which we consider to be very appealing in the current market.”

“After this year’s turbulence, corporate bonds are once again a very attractive asset class.”

New debt issuances and refinancings will likely be more challenging going forward amid higher interest rates and slowing growth, eventually causing corporate defaults to increase. For that reason, Pikdöken suggests building and maintaining a diversified portfolio of corporate bonds to minimize the risk associated with potential bankruptcies. “The critical thing in corporate bond management is to try to keep the bankruptcy rate as low as possible and we believe that this is best done by holding portfolios that are diversified across both sector, country and company,” says Pikdöken. “If you combine this with interest rates of between 8-12 percent a year, you get a portfolio that is very robust and can handle possible bankruptcies in the portfolio.”

The yield on a bond investment is a summary of the overall return that stems from the remaining interest payments and principal to be received relative to the price of the bond. “There are two different elements that contribute to yield,” points out Pikdöken. There are “great opportunities for the funds that avoid being forced sellers in turbulent markets and can instead be buyers of bonds that trade at prices well below the rate of 100,” he continues. “An important part of Atlant Fonder’s management is being able to act opportunistically when the market is turbulent.”

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Othania’s All-In-One Fund Celebrates Five Years

Danish fund boutique Othania is celebrating the five-year anniversary of Othania Balanceret Makro, its all-in-one fund blending equity, bond, and alternatives exposure through Exchange...

Atlant Fonder Crosses SEK 10 Billion Milestone

Strong performance and steady inflows have propelled alternative fund boutique Atlant Fonder past the SEK 10 billion milestone in assets under management. Its flagship...

Nordea PM Joins Lancelot Global as Co-Manager

Lancelot Global, a long-only equity fund with flexible net exposure ranging from 60 to 120 percent, has strengthened its portfolio management team with the...

Quirky Questions – or, A Peoples Business

If asset management were only about numbers, we could all go home and let the calculators get on with it. But calculators are dull...

Navigating CLOs Through ETFs: Opportunities in AAA-Rated Tranches

By UBS Asset Management: Collateralized Loan Obligations (CLOs) have long been a cornerstone of the U.S. securitized products market, evolving from a niche institutional investment...

From Core to Alternatives: The ETF-Driven Approach of a Finnish Wealth Manager

Wealth managers are tasked with designing investment portfolios that align with clients’ needs, objectives, risk tolerance, preferences, and financial circumstances. While high-net-worth clients often...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.