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.
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Nordic High Yield Advantage
- The Nordic high-yield market offers higher returns (200 bps more spread) and lower volatility than US/European markets.
- It's an inefficient, illiquid market with low correlation to European equities (0.1 vs 0.6-0.7 for US/European high yield).
Return Strategies
- Ridge Capital employs three strategies: performing credit, secondary market purchases at discounts, and event-driven trades.
- Buying discounted bonds and capitalizing on price appreciation contributes significantly to returns.
Helmstad Trade
- Måns Levin recounts a successful trade involving real estate company Helmstad.
- Negative press coverage created a buying opportunity, resulting in a substantial profit.