Kraft Høyrente delivered a good return despite the fact that the Norwegian market for high-yield bonds was somewhat weaker this month. The primary market was nevertheless active in October with several new issues. Credit spreads increased slightly, but are still at historically low levels.
The credit spread on high-yield bonds in Norwegian kroner has been falling since mid-2022, with the exception of a minor correction in April 2025. This is due to the injection of liquidity from central banks, stable capital markets and a strong growth in interest in high-yield funds among investors. It is difficult to see how much more the market will compress further. We do not expect any significant further fall in the premium, but see the possibility of some increase if the uncertainty in the market increases. For our asset management, capital discipline and selectivity remain key.
In October, the fund participated in the issue of Trustly, a leading global payment platform that delivers fast, secure and cost-effective bank payments. The company has an annual transaction volume of approximately USD 93 billion in 33 markets across three continents. Over 100 million people have used the solution. The fund has otherwise made some minor portfolio adjustments.
The portfolio has good quality and attractive yields, and we will continue to exercise capital discipline and price risk correctly.
At the end of the month, the fund had a current interest rate of 7.42 %* and an effective interest rate of 10.13 %.*
*FExcess costs related to management. May change from day to day and is therefore no guarantee of the return in the period for which it is calculated.
Sincerely yours,
Øivind Thorstensen & Simen Aarsland Øgreid
