September was a historically active month, both in terms of issue volume and number of issues. This is despite the fact that credit premiums were further reduced, and the trend is consistent across most sectors. However, effective interest rates remain relatively high, mainly as a result of continued high policy rates in Norway. This means that the high-yield market still appears attractive – especially in the secondary market rather than the primary market. Although the market is characterised by high activity, the fund has chosen to focus on the secondary market, with the exception of participation in Gjensidige’s share issue. Going forward, it will continue to be important to exercise capital control and price risk correctly.
Against this background, there have mainly been adjustments to existing positions during September. We have increased our exposure to the debt collection company Intrum slightly, as well as increased our exposure on a general basis in real estate. The fund also participated in a new bond issued by Gjensidige, which was one of the few new issues we considered attractive during September.
The fund also repaid loans at a premium from Cidron Romanov on the basis of the successful IPO of NOBA Bank. These are loans we have been invested in since 2021 when Bank Norwegian was acquired by the stock exchange and have given unit holders a solid return since then.
We will continue to be selective, with a focus on quality, correct risk pricing and high liquidity in the portfolio
At the end of the month, the fund has a current interest rate of 7.73%* and an effective interest rate of 10.11%.*
*Forcosts related to management. Will be subject to change from day to day, and is therefore no guarantee of the return in the period for which it is calculated.
Sincerely
Øivind Thorstensen & Simen Aarsland Øgreid
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