Analys

Reflections on the Financial Landscape in Sweden – Early 2024

In the opening quarter of this year, discussions among colleagues primarily revolved around the eagerly anticipated positive shift in direct real estate investment markets. While signs of improvement are apparent, timing remains elusive, as always.

Since the notable shift in financial market sentiment in November, there have been significant developments. Here’s a brief overview:

Equity Market
Swedish Real Estate indices have soared by about 40%, with several listed companies issuing new equity for expansion and acquisitions rather than solely addressing debt refinancing.

Bond Market
Record issuance volumes at the start of the year, with spreads nearing levels seen a few years ago, primarily in the Investment Grade segment. The High Yield market also witnessed some refinancings at attractive terms, with the potential for additional bond issues earmarked for investments.

Bank Market
Sentiment towards new lending has improved, though not yet at terms seen previously. Banks continue to prioritize relationship-driven lending, with appetite varying across sectors, buoyed by a better-functioning bond market expected to manage upcoming bond refinancing needs.

Private Debt Market
International funds continue to show interest and liquidity in Swedish and Nordic markets, despite subdued acquisition activity.

 

 

Looking forward, attention is focused on Riksbanken’s communication, with speculation on potential rate cuts in May or June. The primary risks threatening any upcoming rate cuts are the strength of the American economy and the potential for a weaker krona.

In our recent newsletter, we highlighted the international demand for Swedish Real Estate assets, particularly in logistics new builds and speculative projects. Financing for speculative logistics projects, often challenging domestically, can find support from experienced international actors willing to provide debt.

For more insights or assistance with funding processes, feel free to contact us at Angermann.

Intresserad av att veta mer?

Kontakta Fredrik Edner,
Partner
+46 733 92 79 75
fredrik@angermann.se

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