...A Non-Bank Alternative: Nordic high-yield bonds help meet the need for cost-competitive, easy to execute non-bank funding for regional mid-market borrowers, while providing investors with yield pick-up. Nordic high-yield bonds compete effectively with international alternatives, with an estimated EUR32bn outstanding and with Fitch Ratings expecting new issuance to surpass EUR10bn in 2014. Origins as Private Placements: Nordic high-yield bonds initially developed out of previous banking crises in Norway as a securitised bank loan product. Originally oriented towards modestly sized syndicates of domestic Norwegian and specialist international private placement investors, the Norwegian high-yield template has become an increasingly standardised, region-wide UCITS compliant capital market product and asset class. Critical Trustee Function: In 2010 a Norwegian Supreme Court decision confirmed the unique powers of Norsk Tillitsmann, or Nordic Trustee. "No Action" clauses and a high blocking threshold...
