Daniel Sachs on the high-yield market in Bloomberg interview

February 3, 2011

Quotes from the Bloomberg article "Swedish Boom Spawns Krona Junk-Bond Market as Yield Hunt Grows", by Meera Bhatia

"As Sweden’s economic rebound outpaces the rest of Europe, a junk bond market is emerging, spawned by investors pursuing higher yields and companies escaping tighter bank regulations in search of funds."

"Daniel Sachs, chief executive officer at loan and corporate
bond investor Proventus, said the high-yield market has far to
go in Sweden. 'It is very underdeveloped', he said. 'It could
be a much more active, transparent and developed market. We need
to get more potential issuers to look at this way of funding.'”

"Much of the high-yield debt issued in Sweden isn’t rated by the
main companies and has an unofficial shadow rating."

"'Sweden has little history of issuance in high yield bonds, in part because of a lack of investor interest and also because small to mid-sized companies have typically turned to banks for funding', said Johan Ericsson, Catella’s chief executive officer, in an interview last month."

"'Sweden’s main exchange has also looked into the market and
could start a trading platform tomorrow if needed', said Sarah
McWhirter, who heads the fixed-income department at Nasdaq OMX
Stockholm. 'Future regulation may fuel demand for such a move',
she said by phone."

"Sachs at Proventus said he has been speaking to companies, investors, authorities and the central bank to establish a high yield market. 'I would love to be able to invest more in Sweden', he said."