Investing in Safe Assets: A Focus on Scandinavian Bonds

In today’s increasingly appealing interest rate environment, investors should focus more on “safe assets,” says Jan Schopen, Portfolio Manager and Analyst with the Global Fixed Income Team at Lazard Asset Management. While German government bonds, covered bonds, and other core European bonds remain viable, Schopen identifies another attractive option: high-quality bonds from Scandinavia.

Defining “Safe Assets”

From his perspective, such a “Scandinavian High Quality” portfolio offers an attractive risk-return ratio and relatively high security in times of crisis: top AA ratings, reasonable returns, and high liquidity. “For Eurozone investors, this is particularly interesting because it is positioned outside the political uncertainties of the Eurozone and the grip of the European Central Bank, while still allowing for a coupon of over three percent.”