Strongest first half on record underscores the Nordic Bond market's growing international appeal

Frankfurt, 14 July 2026 – The Nordic high yield bond market recorded €12.7 billion across 119 transactions in H1 2026, its strongest first half on record and 4% above H1 2025. Non-Nordic issuers accounted for a record 60% of primary volume, while credit sentiment absorbed two geopolitical shocks, confirming the market's continued evolution into a pan-European funding platform.

Momentum built through the half. Q2 2026 was the busiest quarter on record with €8.2 billion across 64 transactions, and the final week of May marked the busiest primary market week ever, with approximately €1.75 billion equivalent priced across nine issuers. Average deal size rose to approximately €145 million (FY 2025: €130 million). Transaction activity was driven by refinancing (45%) and general corporate purposes (30%), with investments and capex accounting for 14% and M&A contributing 9%.

International participation reached a new high. Non-Nordic issuers accounted for €7.6 billion, a record 60% of H1 primary volume, following a quarterly record of 62% in Q1. DACH issuance climbed to an all-time high of €1.0 billion, combining debut issuers and refinancing transactions across both quarters. Telio debuted with a €250 million senior secured FRN, the largest DACH transaction of the second quarter, refinancing existing debt into the Nordic format, while repeat issuers Tempton and Secop rolled existing Nordic Bonds into new issues, with all three Q2 DACH transactions executed under Pareto sole mandates. This followed a strong opening quarter led by Keenfinity, a Triton-backed carve-out from Bosch, with a €325 million senior secured FRN, and Frankfurt-listed HomeToGo's €101 million debut. The investor base has internationalised in parallel: non-Nordic accounts placed 77% of orders in Pareto-led transactions in H1 2026, up from 70% in 2025.

Credit sentiment proved resilient through a turbulent half-year. Following the January tariff episode and the US-Iran war in March, the iTraxx Crossover fully retraced its war-driven spike of 362bps to end H1 at approximately 248bps, among its tightest levels in four years. Nordic high yield spreads tightened 53bps over the half to 496bps, touching their tightest level since January 2025 in mid-June, before a hawkish June Fed hold amid elevated US inflation capped further tightening into quarter-end. The Nordic performance came against a global backdrop of record supply, with European high yield posting an all-time quarterly record of €46.0 billion in Q2 and US high yield issuance rising 25% year-on-year to $180.8 billion.

Having set new records for issuance activity and international participation while successfully navigating two episodes of pronounced market volatility, the Nordic Bond market enters the second half of 2026 with considerable momentum.

The findings are discussed in greater detail in Pareto Securities' latest Nordic Bond Market Update, which reviews issuance activity, investor demand, pricing trends and key developments across the Nordic and broader European high yield markets.
 

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.