Monetary Matters with Jack Farley
Dodging Tariff Turmoil in Nordic High Yield Credit | Måns Levin of Ridge Capital
Apr 15, 2025
Måns Levin, CEO and co-founder of Ridge Capital, shares insights into the Nordic high-yield credit market, highlighting its potential for double-digit returns insulated from trade risks. He discusses the unique features and inefficiencies that investors can capitalize on, and the strategies needed for navigating this volatile landscape. Levin also delves into Finland's geopolitical challenges and how they impact regional investment dynamics. The conversation emphasizes the importance of disciplined decision-making and investor engagement in maximizing returns.
51:50
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The Nordic high-yield credit market offers unique opportunities for high returns due to its inefficiencies and lower volatility compared to larger European markets.
- Building strong relationships and engaging directly with investors is crucial for success in the niche Nordic high-yield space, fostering trust and transparency.
Deep dives
Understanding the Nordic High-Yield Market
The Nordic high-yield market offers investors opportunities for high returns, particularly due to its inefficiencies and smaller size compared to its European counterparts. With a market size of approximately €60 billion, it constitutes only 10-15% of the total European market, making it an attractive but often overlooked investment area. The market is characterized by lower volatility and a correlation of around 0.1 with European equities, which is significantly lower than that of other high-yield markets in Europe and the U.S. This unique combination facilitates higher yield potential, often 200 basis points more than European and U.S. high yields, while maintaining a focus on credit risk rather than interest rate sensitivity.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
