(Bloomberg) The man running the hedge fund operations of Danske Bank A/S — the biggest financial conglomerate in the country to have endured the longest stint of negative rates — says he’s found a trade that is unlikely to fail.
Exceptionally low yields have driven investors out of Nordic covered bonds. Only the shortest-dated notes still generate some interest. According to Michael Petry, head of hedge funds at Danske Capital in Copenhagen, that’s opened a rare window for relative-value investors who focus on spreads.
