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New names: Storskogen and Svenska Handelsfastigheter

The final interim reports were published in May, and companies have generally been stable with few negative surprises.

There has been continued intense activity in the primary market and mostly great interest among investors. The cumulative volume of corporate loans issued so far this year is greater than both last year and the year before. In terms of sector, real estate dominates. We did not see any major changes in credit margins, and these are still at compressed levels as the market remains strong and stable. Carnegie Investment Grade had positive performance in May.

The fund participated in a number of issues during the month. One new name is Storskogen, an investment company that acquires small and medium-sized companies in areas like trade and industry. It issued its first bond with a maturity of 3 years. Another new name is Svenska Handelsfastigheter, which focuses on retail outlets linked to food and discount stores and has tenants such as ICA, Coop, Elgiganten and Rusta. It has a BBB- rating from NCR and issued a 4-year bond that pays Stibor +150 basis points.

We also took the opportunity to extend some existing names in the portfolio that we like and want continued exposure to. These were Arla, real estate company FastPartner, Volvo Treasury and Nibe, which all issued bonds in May. We see Nibe as particularly interesting from a sustainability perspective with its focus on sustainable energy solutions for the home. It issued a 5-year bond that pays Stibor +85 basis points.

Summer is finally here, and eventually the holiday relaxation will find its way to the markets. Until then, it is likely that we will continue to see intense activity in the primary 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.

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