News / BOS Nordea – Above and beyond YTM: covered bonds as a cash alternative or defensive return enhancer

BOS Nordea – Above and beyond YTM: covered bonds as a cash alternative or defensive return enhancer

  • When: 16h25 – 16h55
  • FSMA accredited*: 0,5 points bank (B600 014)
  • Register here

Above and beyond YTM: covered bonds as a cash alternative or defensive return enhancer

With low rates across the board, many investors seek alternative sources of return.  Our Covered Bonds expertise: face a low yield world in safe assets.

Covered bonds

This year has amplified the struggle investors face in a continuous low yield world : finding an attractive low-risk home is an incredible challenge. Nordea’s covered bond solutions provide an answer to this dilemma. 

Covered bonds represent a niche expertise in the market in which Nordea has one of the longest and most outstanding track records in terms of steady alpha generation. The inefficiencies and complexities of the covered bond market offer a wide range of opportunities to generate alpha on spread opportunities, i.e. a performance driver which does not rely on the absolute level of yields: from new issuers that pay a premium to attract investors, to spread movements related to local markets/regions/issuers/currencies. Nordea offers three solutions with tailored duration and spread risks to provide either a smart alternative to cash or a defensive way to strengthen return potential. 

Covered bonds are one of the safest allocations in the fixed income segment, thanks to the dual security: the highest position in the capital structure and the backing by an over-collateralized pool of high quality assets (listed on the bank’s balance sheet and therefore not eligible for bail-in). There has been no default in covered bonds in more than 200 years and they typically carry an A – AA rating. Moreover, the current negative supply in the market is supporting covered bonds and, as opposed to govies, they are negligible in the PEPP which shields them from negative tapering effects. 

Speakers FIF 2021

Mr. Spitaels has joined Nordea Asset Management in February 2020 as a senior sales for our distribution activities in Belgium.  Filip has more than 17 years of experience in the asset management industry covering wholesale clients in the Benelux.  He previously held positions at Invesco, OYSTER Funds, DWS Investments and ING IM.  Filip holds a degree in Business Management (option languages) from the School of Economics in Ghent. 

*This breakout session is accredited by Edfin vzw. Co-organiser of the Fund Insiders Forum. In order to acquire FSMA credit points, we are required to scan your ticket at the entrance.

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