Close

Issues in Stockholm Exergi, SCA and Hexagon

The final month of the third quarter was relatively stable, but there was some volatility as concerns about a second wave of Covid flared up in various parts of the world. And sentiment turned somewhat weaker and more hesitant towards the end of September.

With the exception of some restraint towards the end of September, investor demand has remained strong and we have generally seen credit margins decline further. This is also reflected in the fact that there has generally been relatively substantial interest in the primary transaction market.

The Riksbank left interest unchanged at 0 percent, and it is expected to remain at this level in the next few years. The bank believes that, even if we see a recovery, the uncertainty will remain substantial and stimulus will be needed. One of the measures is the Riksbank’s purchase of corporate bonds, which began this month and amounted to SEK 300 million as of 28 September.

The primary market was active this month and the fund participated in issues from Stockholm Exergi, SCA and Hexagon. In real estate the fund took on issues from Humle and Compactor, the latter of which is a holding company that invests through its subsidiaries, the largest of which is FastPartner. Furthermore, the fund expanded its positions in real estate service company COOR and Tele2. The fund reduced its exposure to certain maturities in Akelius, ICA and Husqvarna. The performance of these names has been good since the spring’s turbulence, and we remain upbeat about these issuers despite reduced exposure.

The quarter ended with another positive month, and Carnegie Investment Grade chalked up a gain of 0.23 percent.

The autumn will bring the US presidential election and a continued focus on the spread of Covid. At this moment the sentiment seems cautious, but we still hope to see a stable autumn for the credit market. Carnegie Investment Grade invests in well-managed, stable and sustainable companies. We prioritise a defensive and diversified portfolio, in line with our management philosophy.

More about the fund

Investment­ Grade A

Carnegie Investment Grade invests in bonds issued by Nordic companies. The fund focuses on corporate bonds with high credit ratings, known as investment grade. Investments are never made in a...

More info
Buy fund

More articles

Intense activity in the real estate sector
Carnegie Investment Grade

Intense activity in the real estate sector

The positive sentiment continues, and the credit market had a strong start to the year. Covid vaccination continues around the world, but in many places it is unfortunately not happening...

Mona Stenmark 3 February 2021
Tighter credit margins and eased concerns
Carnegie Investment Grade

Tighter credit margins and eased concerns

Sentiment was more upbeat towards the end of November, and this continued in December, resulting in a strong credit market. After a sometimes turbulent and stormy year, 2020 ended on...

Mona Stenmark 7 January 2021
Positive tones in November
Carnegie Investment Grade

Positive tones in November

After a weak October, the tone became more positive in November. The news of a coronavirus vaccine led to hopes that we are nearing the end of this pandemic and...

Mona Stenmark 2 December 2020