Monthly report October 2021 - HYOF

HYOP continued to deliver a good return in September with a monthly result of plus 0.40 %, and a total of 5.46 % during the first 10 months of the year.

I consider it entirely possible to achieve a target return of 7% for the full year 2021.

October has been the most tumultuous month in a long time in the global fixed income markets and there are also divided opinions about inflation expectations.

The Riksbank's interest rate path shows an unchanged policy rate for several years to come, but now an increase of about 25 basis points is being discounted in 2022 and a further 30 in 2023, which means

higher short-term interest rates and thus also flatter yield curves.

Energy prices and a lack of electricity as well as high freight prices dampen market unrest, which has also created some concern in the stock market.

During October, the stock market shook off some of the concerns about stagflation, energy shortages and supply disruptions - the S&P 500 rose by 7.0% and the OMXS by 5.1%.

Credit spreads expanded marginally in the high yield segment.

The market expects that new issues will take place during the last quarter of 2021, which may increase supply somewhat.

Jan Lundquist Manager HYOP

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