Frankfurt, January 29, 2025 – Pareto Securities, a leading investment bank specialising in Nordic and German mid-market debt capital markets, reports that the Nordic High Yield (HY) bond market delivered its strongest year on record in 2024. Total issuance volume reached €17.9 billion, surpassing the previous record set in 2021 by €2.2 billion.

The market proved robust and showed exceptional activity throughout the year, driven by strong refinancing demand amid favourable market conditions. Notably, Nordic HY spreads tightened significantly, with a contraction of the Pareto Nordic HY index by 118 basis points throughout 2024 reflecting improving sentiment and investor demand in the market. The iTraxx Crossover Index remained below its two-year average throughout 2024, signalling a stable environment for bond issuances.

Internationalisation accelerates

The internationalisation of the Nordic HY market gained momentum in 2024, with non-Nordic issuers accounting for 44% of total issuance volume and non-Nordic investors making up 60% of allocated capital - up from 40% in 2021. Also, German issuers embraced the Nordic HY format, with 14 transactions totalling €1.3 billion in 2024, marking a significant milestone. The fourth quarter alone contributed five transactions. More than 80% of primary volume in the German SME bond market, was issued in the Nordic HY format.

Julian Müller, Partner at Pareto Securities Germany, emphasized the format’s growing appeal:

“The Nordic HY bond market offers German SMEs a unique opportunity to access bank-independent financing for larger transactions. Its broad international investor base and flexible, risk-appropriate structures have made it an essential tool for mid-sized companies seeking scalable funding solutions.”

Driving market leadership

In 2024, Pareto Securities maintained its position as a market leader, securing a 30% overall market share in Nordic HY bonds. For EUR-denominated bonds and private equity-backed transactions, Pareto’s market share was even higher, at 46% and 41%, respectively.

Pareto supported a range of notable transactions across sectors, underscoring its expertise in facilitating access to capital markets for Nordic and international clients alike.

Optimistic outlook for 2025

The momentum from 2024 sets a strong foundation for 2025, with continued demand expected across the Nordic HY market. Steady fund inflows, solid HY fund performance, and a favourable rate environment signal another active year ahead.

“The record-breaking performance of the Nordic HY market in 2024 reflects its growing international appeal and resilience,” Müller added. “Pareto Securities remains committed to driving innovation and connecting clients with tailored capital solutions in this dynamic market.”

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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.