Global liquidity, strong refinancing demand and rising international participation push Nordic high yield volumes to a new annual record

Frankfurt, 23 January 2026 – The Nordic high yield bond market closed 2025 with record annual issuance of €21.8 billion, up 22% from €17.9 billion in 2024. Q4 continued to contribute meaningfully to the full‑year result, reinforcing the market’s position as one of the most active financing venues for mid-market issuers in Europe

Growth in 2025 was driven by broad based refinancing activity, which accounted for 61% of volumes, as well as a steady pickup in general corporate and capex financing. The year also saw a rise in private equity backed issuance to 38% of total activity and strong engagement from international investors across all major sectors.

International diversification remained a defining theme. Non‑Nordic issuers contributed €8.1 billion in primary volume, the highest level on record, underscoring the depth and accessibility of the Nordic market. The DACH region delivered €1.8 billion of issuance in 2025, supported by notable transactions including Muehlhan (€250 million senior secured bonds), DEAG (€75 million senior unsecured bonds), and DURAN Life Science (€230 million senior secured bonds). Additional debut activity in Q4 further reinforced the region’s cross‑border momentum.

Investor participation reached new levels of breadth and sophistication. 68% of allocations in Pareto managed transactions originated from outside the Nordics, reflecting deepening demand across the UK, Continental Europe, and the US.

Credit conditions remained resilient throughout 2025 despite periods of volatility. Spreads widened temporarily in April amid global risk repricing but normalised into year‑end, supported by stable fundamentals and sustained demand from institutional investors. Execution conditions remained attractive through Q4, enabling issuers to secure competitive funding across a range of formats and tenors.

With record full‑year volumes, expanding international participation and a structurally diversified issuer base, the Nordic high yield market has entered 2026 with strong momentum and remains one of the most dynamic funding venues in Europe.

For further insights, please refer to our full Q4 2025 Nordic High Yield Market Newsletter.

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.