Nordic Corona (Covid-19) status and what is Nordic specific
The Norwegian Krone (NOK) is having a difficult period in the markets. It is simply being hammered as a result of the corona (Covid-19) crisis and the oil price war ongoing. Throughout the last years many investors gave up the currency, as they did not manage to understand the weakness, despite the AAA rating by all agencies, the higher growth and the higher and higher central bank rates. And from a chart it looked to be an ever-losing strategy seen from a Euro (EUR) based investor’s point of view. But has it really been a losing position?
We have very special Nordics fixed income markets now, like elsewhere in the world. There are 3 things concurring that hits the market very hard. Firstly, the Corona virus and the political reaction with severe effects on the global economy. This is extreme for the economy in the short term. The big x-factor is how long this «lock down» will last. Secondly, the oil price has plummeted and this has impact on global markets and particularly parts of the Norwegian economy. Thirdly, all of this is bringing a liquidity crisis in the global fixed income markets.
Investments in funds are always related to risk. Past performance is no guarantee of future results. Performances are calculated net of fees. Investments in funds are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment.