Frankfurt, April 15, 2025 – The Nordic high-yield (HY) bond market experienced its most active first quarter on record in Q1 2025. Total issuance reached €7.5 billion – nearly twice the volume of Q1 2024 and already surpassing the full-year figure for 2022. Outstanding volume in the market rose to approximately €65 billion.

Strong refinancing activity and growing market depth

The first quarter was marked by robust refinancing activity, as issuers moved swiftly to capitalise on favourable financing conditions. The average transaction size rose further to €113 million, reflecting the market’s increasing appeal to larger issuers. Private equity-backed deals remained at high levels, accounting for 29% of total issuance.

Accelerating international participation and format adoption accelerate

Nordic issuers accounted for 73% of total volume, while non-Nordic activity remained resilient. Cross-border momentum was underscored by transactions from international issuers such as Germany’s Kolibri Beteiligung (€145 million), LifeFit Group (€90 million tap), and Spain’s BeeDigital (€42.5 million). Non-Nordic investors represented 61% of allocations in Pareto-led transactions, highlighting the market’s growing international relevance.

Market volatility triggers secondary shift

While spreads and volatility remained relatively stable throughout most of Q1, sentiment turned sharply at the end of the quarter amid escalating trade tensions and new US tariff announcements. In response, Nordic HY spreads widened into early Q2, primary issuance temporarily paused, and investor attention shifted to the secondary market, which saw heightened activity and robust demand – particularly within the Nordic HY-market.

Market resilience amid volatility

The Nordic HY market has demonstrated notable resilience in the face of recent volatility. More disciplined investor positioning and improved liquidity management have resulted in fewer forced sellers compared to previous sell-offs. Increased market depth and steady demand have supported bids, leaving the market in a solid position.

Pareto remains market leader

Pareto Securities upheld its leading position, managing over 60% of transactions in Q1. The firm once again topped the league tables for EUR-denominated and sponsor-backed Nordic HY bonds, reinforcing its status as the partner of choice for issuers across Europe.

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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.