Souring Bond Deals Threaten to Undermine a Nordic Credit Boom

A succession of Nordic bond deals that sank after issuance is leading long term investors to fret about the reputation of this rapidly burgeoning market.

Sales have surged in recent years because of its appeal to companies seeking to borrow smaller amounts without incurring the cost of obtaining a credit rating. With the heady growth has come fears of a deterioration in credit quality, and the blame is being laid on firms from outside the Nordic region.