Nordic bond market stays on course for a record year in Q3 2026 as international issuers account for 60% of volume

Frankfurt, 12 October 2026 – The Nordic high yield bond market proved resilient through a quarter of rising interest rates. Primary issuance of €4.6 billion across 40 transactions made Q3 2026 the second-strongest third quarter on record and brought year-to-date volume to €17.3 billion, in line with the same period of 2025, the strongest year in the market's history. Non-Nordic issuers again accounted for 60% of supply. Nordic high yield spreads ended the quarter modestly tighter even as broader credit indices widened in late September. Unlike last year, the summer months made a substantial contribution to quarterly volume. July and August together raised €2.7 billion, nearly twice the volume of the same months in 2025, while September issuance of €2.0 billion fell well short of last year's record €3.8 billion. Execution timing proved decisive, with 86% of September volume priced by 18 September, before credit indices moved wider. US dollar transactions accounted for two thirds of third-quarter volume, and the average deal size excluding taps rose to approximately €147 million. Refinancing remained the primary use of proceeds, representing 47% of transactions year to date. The internationalisation of the market continued unabated. Non-Nordic issuers have raised €10.4 billion so far this year, already more than in any previous full year, while volume from Nordic companies declined to €6.9 billion from €11.5 billion a year earlier. The trend is mirrored on the buy side, where non-Nordic investors placed 78% of order volume in Pareto-led transactions in 2026, up from 63% in 2024. Pareto Securities led non-Nordic issuance with a 43% market share year to date, with third-quarter mandates including the debuts of Accurus Aerospace (US, $425 million), West Lake Holdco (US, $275 million) and City Service (Lithuania, €100 million), alongside returning issuers NES Fircroft (UK, $650 million) and EXMAR (Belgium, $150 million). DACH issuance reached €1.1 billion year to date following a record first half, with Muehlhan's €64 million tap the only DACH transaction of the quarter. Credit markets came under pressure in the second half of September as higher government bond yields and heavy primary supply weighed on spreads. The ECB and the Federal Reserve each raised rates by 25 basis points, the Fed for the first time since 2023, while US 10-year Treasury yields climbed to their highest level since 2006 and French government bond spreads over Bunds widened beyond 130 basis points. Against this backdrop, the iTraxx Crossover widened from around 245 basis points at the end of June to 301 basis points at quarter-end. The move was driven by rates rather than credit risk, with the VIX remaining in a contained range of 14 to 21 throughout the quarter. Nordic spreads proved comparatively resilient, with the Pareto median Nordic high yield spread tightening to 436 basis points by early September and closing the quarter at 474 basis points, 7 basis points tighter than in June. The broader high yield market followed a similar pattern. European issuance of €27.1 billion marked the second-strongest third quarter on record, albeit 23% below Q3 2025, while US volume of $80 billion was 32% lower year-on-year despite a strong September led by jumbo financings for SoftBank and Paramount Skydance. With year-to-date issuance in line with the prior-year record and a firmly established international issuer and investor base, the Nordic Bond market enters the final quarter of 2026 well positioned. The findings are discussed in greater detail in Pareto Securities' latest Nordic Bond Market Update, which reviews issuance activity, investor demand, pricing trends and key developments across the Nordic and broader European high yield markets. 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.   

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