Pareto Securities AS
Pareto Securities underlines its leading position in the Nordic High Yield Bond market in the third quarter of 2022

Pareto Securities underlines its leading position in the Nordic High Yield Bond market in the third quarter of 2022

Frankfurt, October 20, 2022. Pareto Securities AS, an international investment bank headquartered in Oslo and a long-standing partner to the mid-market in Scandinavia and Germany, has underlined its leading position in the Nordic High Yield Bond market for midsized companies in the third quarter of 2022, despite the ongoing challenging market environment. After the first nine months of 2022, Pareto Securities achieved a market share of 21% and 25% for Euro-denominated Nordic Bonds, respectively, and still retains the top position in the Nordic High Yield Bond League Tables.

In the third quarter of 2022, the impact of interest rate hikes, continued macroeconomic uncertainty and overall high volatility were the main factors influencing activity in the primary markets. A total of 14 Nordic High Yield Bonds with a combined volume of around EUR 1.1 billion were placed in the third quarter of 2022. This is a significant decrease of around 70% year-on-year and reflects the current difficult market environment. Compared with the first three quarters of the previous year, primary market volume in 2022 decreased by 55% to EUR 6.6 billion. In the U.S. High Yield market, primary volume declined by as much as 76%. This underlines the relative resilience of the Nordic High Yield market in the face of an overall gloomy market environment.

Consequently, the median Nordic High Yield Bond spread, as calculated by Pareto Securities Credit Research, recorded an increase of 162 basis points since the beginning of the year to 644 basis points at the end of September. The spread calculated by Moody’s for a B2 rating and a maturity of 3 years widened by 222 basis points to 641 basis points in the same period.

Lutz Weiler, CEO Pareto Securities Germany, comments: “The current challenging environment is also having a dampening effect on the development of the Nordic High Yield Bond market. At the same time, we have seen that the Nordic Bond market has proven to be particularly robust in international comparison. Issuers from Germany can also benefit from this, as demonstrated, for example, by the successful bond placement of the Schletter Group. The efficient and flexible transaction structures as well as the usually fast implementation within a few weeks make the Nordic Bond format more than ever a suitable alternative for German SMEs to raise liquidity.”

Nordic Bonds with a total volume of EUR 120 million were listed on the Frankfurt Open Market in Q3 2022. Among others, Pareto Securities acted as sole bookrunner in the issuance of a EUR 50 million senior secured bond and a EUR 15 million secondary secured bond by Germany-based Schletter Group. The transaction was characterized by sizeable demand in Continental Europe and was significantly oversubscribed. With 41 Debt Capital Markets transactions since the beginning of the year, including 35 Nordic High Yield Bond transactions, Pareto Securities confirms its top position in the Nordic High Yield Bond market.

SAVE THE DATE: On December 6, 2022 from 9am to 12pm, Pareto Securities will host its annual Nordic Bond Webcast in English, titled “Nordic Bonds 2022 and beyond: Volatile Energy Prices and ESG Considerations Impacting Market Activities.” For more information and the possibility to register, click here.  


About Pareto Securities
Founded in 1986, Pareto Securities is headquartered in Norway and has offices in Denmark, Finland, Sweden, Germany, the UK, Switzerland, the US, Singapore and Australia. Pareto Securities has a leading position in the Nordic financial markets and a strong international presence. Pareto Securities offers a wide range of financial services, including equity and fixed income brokerage, equity, debt and project finance, and advisory services related to mergers and acquisitions and restructuring.