The news flow during March was dominated by developments in the Middle East and high levels of uncertainty. U.S. and Israeli strikes against Iran continued, met by Iranian counterattacks against Israel and other countries in the region. This geopolitical instability fueled high volatility across several asset classes, with oil prices surging to their highest levels since the start of the war in Ukraine in 2022.
Uncertainty surrounding the conflict and rising energy prices have shifted market sentiment regarding inflation and policy rates. Expectations have pivoted from rate cuts in the U.S. and unchanged rates in Europe to unchanged rates in the U.S. and hikes in Europe. During March, the Fed, ECB, Riksbank, and Bank of England all left their policy rates unchanged, emphasizing the uncertainty of the situation. Short-term bond yields rose more sharply than long-term yields.
In the credit market, bond prices fell as a result of rising interest rates and widening credit spreads. The iTraxx Crossover credit index rose by approximately 100 basis points. Reactions in the Nordic corporate bond market were more contained, although bond prices declined there as well.
On the corporate front, Hedin Bil reached an agreement with its bondholders regarding amended terms for its outstanding bond loans.
Moba Network reached a settlement with its bond investors which included, among other things, an amortization payment and an increased redemption price.
Fastpartner CEO Sven-Olof Johansson announced his transition to the role of Chairman of the Board, to be succeeded by Christopher Johansson.
Swedish retail sales data for February indicated that households were more cautious than expected at the start of the year. These statistics were compiled prior to the outbreak of the conflict, and it remains to be seen how recent developments will impact consumer sentiment moving forward.
Primary market activity was lower, though issuances were completed with wider credit spreads and more stringent terms. Stillfront and Nyfosa issued at higher levels than previously. Simplicity did not participate in these issuances but invested in new offerings from Avanza Bank, Glamox, and Neptunia.
At month-end, the interest rate and credit duration stood at 3.06 and 3.56 years, respectively.
Regarding the fund's geographical exposure, the U.S., Germany, and Sweden were the three largest regions with exposures of 16.9, 11.0, and 10.9 percent, respectively.
| Simplicity Global Corporate Bond, % | March, 2026 |
| Fund MoM, change in percent | -1.70 |
| Fund YTD, change in percent | -0.79 |
