20 March 2020, Sweden | News
The ongoing crisis caused by the coronavirus has led to large falls in the stock market, and has also had a substantial effect on the corporate bond market. Firstly, it is evident that the market has repriced the view of risk in the underlying bonds, resulting in higher credit spreads and consequently lower prices. Secondly, the liquidity, i.e. the ability to buy and sell securities, in the Nordic corporate bond market has also become considerably lower than previously. Sweden's Riksbank announced yesterday that it intends to include corporate securities (issued by non-financial companies) in the purchases of securities up to SEK 300 billion as one of several measures to stabilise the economy and the financial markets. Exactly what instruments may be included in these purchases is not yet clear.
Catella Fonder yesterday participated with other fund management companies in a meeting with Sweden's Financial Supervisory Authority (Finansinspektionen) about the current market situation. All fund management companies make different judgments based on the specific circumstances of their own funds.
Catella Fonder is closely monitoring the situation and any impact this could have on trading in our funds. Our current assessment is that trading in our funds can continue, but we are very aware that this could rapidly change as new information becomes available about the prevailing market conditions.
We at Catella Fonder are of course available by phone or email if you have any questions / concerns.
Risk information
Investments in fund units are associated with risk. Past performance is no guarantee of future returns. The money invested in a fund can increase and decrease in value and it is not certain that you will get back the full amount invested. No consideration is given to inflation. The Catella Balanserad, Catella Credit Opportunity and Catella Hedgefond funds are special funds under the Swedish Alternative Investment Fund Managers Act (SFS 2013:561) (AIFM). Catella Sverige Aktiv Hållbarhet and Catella Småbolagsfond may use derivatives, and the value of the funds may vary significantly over time. The value of Catella Sverige Hållbart Beta may vary significantly over time. Catella Avkastningsfond may use derivatives and may have a larger proportion of the fund invested in bonds and other debt instruments issued by individual national and local authorities and within the EEA than other investment funds, in accordance with Chapter 5, Article 8 of the Swedish Investment Funds Act (SFS 2004:46). Catella Nordic Corporate Bond Flex may use derivatives and may have a greater proportion of the funds invested in bonds and other debt instruments issued by individual national and local authorities and within the EEA than other investment funds. For more details, complete prospectuses, key investor information, and annual and half-yearly reports, please refer to our website at catella.com/funds or phone +46 8 614 25 00.