Podcast: Capital structure in the real world
The desk suggests that Nordic corporates are adapting their capital structures in response to the evolving economic landscape shaped by the COVID-19 pandemic. Per the full note source, the discussion highlights the increased importance of funding and rating strategies, as market imperfections necessitate tailored advice for corporates seeking financial resilience. With mounting evidence indicating a shift in corporate funding preferences, traders should remain alert to developments that could signal both opportunities and challenges in the region's capital markets.
What the desk is arguing
The desk emphasizes that Nordic corporates, 20 years post dot-com bubble, are increasingly assessing their capital structures, especially in light of resilience showcased during the pandemic. The conversation with Henrik Immelborn from Nordea Investment Banking underlines an evolving landscape, where corporate funding strategies must address market imperfections at a broader scale.
Supporting this view is the recognition that corporations are likely to increasingly employ debt financing, diversifying their capital sources to mitigate risks stemming from surges in volatility and uncertainty in the global economy.
Where it sits in our coverage
Our consensus target for the euro's performance against the dollar is set at 1.075, with a range between 1.040 to 1.120. Notably, jpmorgan projects a target of 1.10 for March 2026, while bofa takes a more conservative stance with a target of 1.04.
Given current positioning, the desk's perspective aligns closely with jpmorgan, sitting at the upper periphery of our projected range.
How other firms see it
Firms observing similar trends include jpmorgan and credit-suisse, supporting the notion of diversified funding strategies becoming more prominent. Conversely, bofa expresses a cautious outlook, preferring a lower estimate based on tighter credit spreads.
This commentary could potentially influence pairs like EUR/USD, considering the possible implications on corporate dovishness given ECB policy changes prompted by broader economic conditions.
What the calendar says
There are no upcoming high-impact events on the calendar for the next 30 days that would directly influence this narrative.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01Nordic corporates are reassessing capital structures, influenced by COVID-19 adjustments.
- 02The shift towards debt financing highlights ongoing market imperfections.
- 03Corporate funding strategies are increasingly tailored, reflecting heightened economic uncertainties.
- 04Traders should pay attention to evolving funding strategies and their implications on market conditions.
Market implications
Watch for further communications from Nordea regarding corporate funding strategies as they could indicate shifts in market sentiment. Additionally, keep an eye on the EUR/USD pivot level around 1.075 for potential trading signals.
Risks to this view
Unexpected tightening in global liquidity conditions or major fiscal policy shifts in response to inflationary pressures could force a reversal of the current trend in Nordic corporate debt preferences, undermining the desk's thesis.
Podcast Podcast: Capital structure in the real world 06-04-2021 In the latest podcast episode of Nordea On Your Mind Henrik Immelborn, who runs Debt Solutions and Loans in Denmark at Nordea Investment Banking, discuss together with Johan Trocmé and Viktor Sonebäck how Nordic large corporates fund themselves today versus 20 years ago. Listen in to the latest podcast episode from Nordea On Your Mind, in which Johan Trocmé and Viktor Sonebäck from Nordea Thematics discuss with Henrik Immelborn how corporates has coped with the shock from the COVID-19 pandemic in 2020. They also deep dive into how market imperfections create a need for advice on funding and rating strategies.
We wanted to show you a Spotify but you cannot see it as you have not enabled cookies Click here to update your consent Get the report Top decision makers at Nordea’s large clients across the Nordic region receive Nordea On Your Mind around eight times per year. If you are a corporate client and want to access the full Nordea On Your Mind report, please contact viktor.soneback [at] nordea.com (Viktor Sonebäck) . Share on Facebook Share on Threads Share on Linkedin 30-10-2025 Markets and investment Nordea to offer customers access to an exchange-traded product tracking Bitcoin As the European regulatory environment for cryptocurrencies has matured and the demand for virtual currencies and cryptocurrencies is growing across the Nordics, Nordea has decided to allow customers to trade in a crypto-linked product on its platforms.
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