{"id":18422,"date":"2018-09-14T01:34:48","date_gmt":"2018-09-13T22:34:48","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=18422"},"modified":"2018-09-14T01:34:48","modified_gmt":"2018-09-13T22:34:48","slug":"nordeas-top-covered-bond-fund-bets-on-greece-for-fattest-return","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/18422","title":{"rendered":"Nordea’s Top Covered Bond Fund Bets on Greece for Fattest Return"},"content":{"rendered":"
(Bloomberg) —<\/span><\/section>\n
The covered bonds team at Nordea is betting on Greece.<\/p>\n

\u201cAt the moment we see good value in Greek covered bonds, which we\u2019ve been invested in since October last year,\u201d Henrik Stille<\/a>, portfolio manager, said in an interview on Monday. \u201cWe still see some value there.\u201d<\/p>\n

Greece turned a page on the sovereign debt crisis that exploded eight years ago, exiting a bailout on Aug. 20. Earlier in the month, Fitch Ratings upgraded the country one step to BB- citing improved \u201cgeneral government debt sustainability\u201d and noting that confidence in the banking sector is rising.<\/p>\n

\n

\n<\/blockquote>\n

Nordea\u2019s Danish fixed income and European covered bond team manages about 39 billion euros ($45 billion). Its European Covered Bond fund<\/a> has returned 4.3 percent a year on average over the past five years, beating 90 percent of its peers, according to data compiled by Bloomberg.<\/p>\n

<\/a>
\n
<\/div>\n<\/figcaption><\/figure>\n

It holds about 100 bonds including debt issued by National Bank Greece SA. Stille says it\u2019s also still possible to find some \u201cattractive opportunities\u201d in Denmark and Sweden, as the Scandinavian markets aren\u2019t trading as tight as their European counterparts.<\/p>\n

\u201cFrom time to time, we also see value in Denmark and Sweden,\u201d he said. \u201cBut it\u2019s not the overall market that is attractive. It\u2019s more specific segments of these markets we like.\u201d<\/p>\n

Active Strategy<\/h3>\n

The fund doesn\u2019t take any duration bets but has an active strategy based on relative value.<\/p>\n

\u201cThe relative value between the markets can vary quite a lot in a year,\u201d he said. \u201cEspecially between the markets in euro and the markets in the domestic Scandinavian currencies. It\u2019s important to be active and move the exposure around.\u201d<\/p>\n

Tapering by the European Central Bank won\u2019t have a big impact on covered bond spreads as the bank will keep reinvesting, Stille said.<\/p>\n

\u201cMany of the core European countries — like Germany, France, Netherlands and Scandinavia — there we think covered bonds are rather attractive versus government for example,\u201d he said. \u201cEven though spreads are a bit tight in absolute terms we don\u2019t think that they are too expensive.\u201d<\/p>\n

Nordea\u2019s low duration European covered bond strategy, which has a duration of one year compared with five years for the European Covered Bond fund, has experienced big inflows, passing 1 billion euros in assets after being launched in October last year.<\/p>\n

\u201cInvestors don\u2019t think that they\u2019re getting compensated enough for taking risk in the financial markets at the moment,\u201d he said. \u201cIt\u2019s better to buy covered bonds that are the safest bonds you can invest in, because then you get an investment that is much safer if we run into financial turmoil.\u201d<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

(Bloomberg) — The covered bonds team at Nordea is betting on Greece. \u201cAt the moment we see good value in Greek covered bonds, which we\u2019ve been invested in since October last year,\u201d Henrik Stille, portfolio manager, said in an interview on Monday. \u201cWe still see some value there.\u201d Greece turned a page on the sovereign<\/p>\n","protected":false},"author":1,"featured_media":18309,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-18422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=18422"}],"version-history":[{"count":1,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18422\/revisions"}],"predecessor-version":[{"id":18423,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18422\/revisions\/18423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/18309"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=18422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=18422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=18422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}