Record-Breaking Quarter for Nordic High-Yield Bond Market

The Nordic high-yield bond market posted a historic first quarter in 2025, with total issuance reaching €7.5 billion, nearly doubling the volume from the same period in 2024. The outstanding volume rose to approximately €65 billion. This surge is attributed to strong refinancing activity and increased market depth, as issuers capitalised on favourable conditions.

Larger transactions also played a role, with an average size of €113 million, indicating the market's appeal to significant issuers. Private equity-backed deals contributed 29% of total issuance. The market saw growing international involvement, highlighted by significant transactions from Germany and Spain. Non-Nordic investors accounted for 61% of allocations in Pareto-led deals.

Despite late-quarter volatility from trade tensions, the market showed resilience, with stable spreads and shifting investor focus to a robust secondary market. Pareto Securities maintained its lead, managing over 60% of transactions, underscoring its dominant role in the Nordic HY market.