Insights

As we wrap a very dynamic year for capital markets, Hilde Jenssen, Head of Fundamental Equities at Nordea Asset Management, answers three key questions about what we can expect in 2024.

As European corporate bonds display yields not witnessed for many years, investors are casting a renewed eye on the region’s credit market. But while all segments of European corporate debt offer attractive yield levels relative to the past decade or more, investors must avoid complacency in the face of continued challenges.

Investors today may be looking back fondly on the decade following the global financial crisis, as unprecedented monetary stimulus and ultra-low interest rates powered one of the most fruitful periods in history for markets – particularly for growth-related equities.

If the world is to be successful in transitioning to a sustainable economy, an enormous transformation needs to take place across many industries. New ecosystems are forming and innovative technologies are emerging; however, we are still at the beginning of this green transition.

The listed real assets universe – an $8trn market – is uniquely positioned to lead and benefit from global sustainability initiatives.

Henning Padberg is one of the European pioneers when it comes to sustainable investment. In 2008 he started his career as a portfolio manager at Nordea Asset Management (NAM). Initially, he had to contend with doubters as to whether sustainable investing and performance can go hand in hand. But today, he manages over EUR10 bn AUM in sustainable funds.

If the world has any chance of slowing the excessive rate of global warming, urgent action must be undertaken to cut methane emissions. A powerful greenhouse gas, methane is estimated to be responsible for more than 25% of today’s global warming .

Following the total write-down of Credit Suisse’s AT1 bonds, both regulation and volatility are likely to increase in the high-yield sector. This is the assumption of Sandro Näf of Capital Four. Nevertheless, he is cautiously optimistic about the coming months.

Investors have encountered experienced several periods of severe market turbulence since the global financial crisis – most notably the European sovereign debt crisis, 2013’s ‘taper tantrum’, and the initial stages of the Covid-19 pandemic. Fortunately, the sharp drawdowns experienced proved on each occasion to be temporary, and the bull run for stocks and bonds ultimately resumed.

Hilde Jenssen, Head of Fundamental Equities at Nordea Asset Management, discusses the global decarbonisation drive and how activities at portfolio level can make a difference.

Why investors should consider a differentiated approach in the current multi-asset correlation crunch

Covered bonds offer many advantages, yet they seem sometimes to be the forgotten piece of the fixed income markets.