A succession of Nordic bond deals that sank after issuance is leading long term investors to fret about the reputation of this rapidly burgeoning market. Sales have surged in recent years because of its appeal to companies seeking to borrow smaller amounts without incurring the cost of obtaining a credit rating. With the heady growth has come fears of a deterioration in credit quality, and the bla...
A succession of Nordic bond deals that sank after issuance is leading long term investors to fret about the reputation of this rapidly burgeoning market. Sales have surged in recent years because of its appeal to companies seeking to borrow smaller amounts without incurring the cost of obtaining a credit rating. With the heady growth has come fears of a deterioration in credit quality, and the blame is being laid on firms from outside the Nordic region. The latest incident involves German cosmetics company LR Health & Beauty SE , which agreed a deal with bondholders this month that will see nearly a third of its note written off . That follows an ongoing court-enforced restructuring at investment firm Nordwest Industrie Group and a slide in KKR & Co. -backed Dutch firm Flora Food Group ’s first Nordic bond. “Most of the high profile difficulties we’ve seen in the market have come from non-Nordic companies,” said Juhamatti Pukka , head of fixed income at Finnish investor Evli Fund Management. “When you see a non-Nordic company, it is not a red flag necessarily, but it might be a yellow or orange flag.” There were more than $8.6 billion of Nordic corporate bonds issued last year in dollars, euros or pounds by companies based outside the region, up a quarter on the previous year and almost five times the amount seen in 2023, according to data compiled by Bloomberg. These deals are typically backed by hedge funds, asset managers, special situations funds and family offices. The case of LR Health is a cautionary tale for investors looking at these foreign deals. The firm caught creditors off-guard shortly after issuing its Swedish-law bond in February 2024, announcing it would get a new major shareholder, Evoco. The shift did not result in a change-of-control covenant coming into play, which allows lenders to be repaid in the event of a switch of owner. Rather, the debt term was structured so that it wasn’t triggered even when majority ownership of LR Health’s holding co...
Morning, I’m Louise Moon from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. Standard Chartered isn’t missing a beat after the surprise exit of its finance chief earlier this month, who was seen as a front-runner inside the bank to replace CEO Bill Winters. Shares tumbled that day, slightly unravelling 2025 gains of about 80%. While the lender reported...
Morning, I’m Louise Moon from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. Standard Chartered isn’t missing a beat after the surprise exit of its finance chief earlier this month, who was seen as a front-runner inside the bank to replace CEO Bill Winters. Shares tumbled that day, slightly unravelling 2025 gains of about 80%. While the lender reported fourth quarter earnings that were weaker than expected, it announced a $1.5 billion buyback . StanChart also issued fresh guidance for the year ahead, which Bloomberg Intelligence says underscores solid profitability momentum. “We are just full speed ahead, we’re investing substantially,” Winters, the longest-serving boss of a UK bank, told Bloomberg TV this morning. He plans to outline a new strategy in May, and added he wants to see it through. Still, it seems investors needed slightly more convincing. While shares rose in Hong Kong, they flip-flopped in London. What’s your take? Ping me on X , LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond. What We’re Watching Builder Balfour Beatty appointed Myles Westcott as its incoming finance chief. Westcott, currently at BAE Systems, will replace Phil Harrison who is stepping down later this year after more than 10 years in the role. Overall demand for Unite Group ’s student digs fell last year , as international applicants continued to prove a weak spot (China was an exception). There has also been a small uptick in students planning to live at home. Demand was strongest at higher quality universities which Unite is now focusing more on. Shares slumped in early trading. Retail crime is slowing following more security spending and better police responses. Reported incidents fell by a fifth in the year through August, according to the British Retail Consortium, though are still four times higher than pre-pandemic ...