The Intelligence Report – 4 December 2017

04 Dec 2017

  • Euro high-yield bonds: too much of a good thing – examining the prospects for Euro high yield in 2018, drawing some conclusions from the recent short-lived correction.
  • What’s behind the decline in the Swedish krona – asking whether the recent weakness is merely a function of a dovish Riksbank, or reflects other factors that could make the krona’s current cheapness a value trap rather than an opportunity.

The Euro High Yield corporate bond market, backed by improving credit fundamentals, and a supportive macroeconomic picture, has delivered strong returns so far this year, both in an absolute sense and relative to investment grade securities. In our first article this week, Olivier Monnoyeur, examines the prospects for Euro high yield in 2018, drawing some conclusions from the recent short-lived correction.

 

In our second article this week, Colin Harte takes a look at the Swedish krona, and asks whether the recent weakness is merely a function of a dovish Riksbank, or reflects other factors that could make the krona’s current cheapness a value trap, rather than an opportunity.
Our next Intelligence Report, to be published on December 19th, will be the last for the year. We will resume publication on January 8th.

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