Our Fixed Income Top Picks
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Orsted may pay dividend again after several years
Orsted, the Danish renewable energy utility, recently published its Q2 earnings report, which showed mixed results. The company exceeded analysts’ expectations in terms of both revenue and EBITDA, but fell short of net income estimates. Nonetheless, project developments are on track, and the company’s liquidity position remains adequate. In light of the results, management maintains its 2026 guidance, and announced dividend payment plans for 2027. Overall, Orsted keeps making good progress, so we are keeping the stock on our Equity Top Pick List.
Commodities - Technical Analysis
Gold and silver have broken their downtrends, triggering upward waves that still hold potential for further gains. After a strong retest, the oil price may settle into a range, but there are still opportunities for further gains. Natural gas prices did not reach a new low, but no pattern indicating a reversal has yet emerged. Copper is maintaining its upward trend; it must rise again within the next few days, or the rally could break down. Wheat and corn are also beginning to turn upward again from key support levels after strong retests.
U.S. and European corporate bond spreads remain at historically low levels, leaving limited room for yield premiums, particularly in the high-yield segment. Regional sovereign and corporate bonds denominated in euros and U.S. dollars still offer attractive alternatives with moderate risk profiles. In this report, we have selected instruments linked to fundamentally solid issuers that provide a balanced risk-return profile in the current market environment.
Diversification of the bond portfolio by currency should continue to be implemented through euro- and dollar-denominated regional government bonds (Hungarian, Romanian, Albanian), as well as high-quality corporate bonds issued in euros and dollars.
Euro-Denominated Corporate Bonds
Corporate bond yields remain at low levels, as risk appetite in the capital markets is currently high, supported by strong profit outlooks and a favorable macroeconomic environment. January started with an exceptionally strong wave of corporate bond issuance. In such an environment, it is challenging to find corporate bonds that still offer meaningful yields at acceptable risk levels. For this reason, we have kept well-known names on our list, as finding better alternatives is difficult.
Dollar-Denominated Corporate Bonds
Companies in the region typically issue bonds in euros, with a much narrower list available in dollars. The list includes two OTP-related bonds—subordinated instruments maturing in 2033 and 2035. Both have early call options, which can significantly limit the yield investors ultimately realize. Another Hungarian-linked bond on the list is MVM’s note maturing in June 2028.
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