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A holiday read: Best of Nordea On Your Mind 2021

A holiday read: Best of Nordea On Your Mind 2021

E-commerce on overdrive, office space after the coronavirus crisis and the best owners for corporate financial performance were just some of highlights from Nordea On Your Mind this year. Here’s a roundup of our favourite content from 2021.

Nordea On Your Mind is the flagship publication of Nordea Investment Banking’s Thematics team, which produces research for large corporate and institutional clients. The research does not contain investment advice and typically covers topics of a strategic and long-term nature, which can affect corporate financial performance.

Top decision makers at Nordea’s large clients across the Nordic region receive Nordea On Your Mind around eight times per year. The publication’s themes vary widely, and many are selected from suggestions by clients. Examples of covered topics include artificial intelligence, wage inflation, M&A, e-commerce, income inequality, ESG, cybersecurity and corporate leverage.

Permanent behavioural changes after the pandemic

The first wave of the pandemic in the spring of 2020 forced many of us to stay at home, scrambling for new ways of working, shopping and entertainment. The most severe restrictions have been lifted, but we are voluntarily keeping some new behaviours and digital delivery models. We have explored this topic in ‘E-commerce and corona, which focused on accelerated online migration of retail sales, and ‘Office space, which explored new ways of working and future needs for work premises.

The perennial themes of funding and capital structure

It is hard to imagine a year when we would not look to explore these themes, as they matter in so many ways, and 2021 was no exception. In ‘The hunt for the right leverage, we took on Nobel laureates with a hardcore quantitative analysis exploring the correlation between financial leverage and valuation plus long-term shareholder value creation. In ‘Basel IV and corporate lending we tried to clarify what the impending new regulatory framework is all about and how it will affect bank lending to corporates.

ESG … again

For large corporates, sustainability has progressed from a nice-to-have to a necessity. ESG ratings are an obvious means of indicating how sustainable a company’s business is. In ESG: Reaping the rewards’, we describe how they work, and how companies should think about reporting ESG metrics and engaging with ESG rating providers. We lay out the case for how corporates that score strongly in ESG are rewarded with superior total shareholder returns over time.

Revolutionary technology, market bubble, or both?

The value of many cryptocurrencies has soared in recent years, although with massive volatility, regulatory uncertainty and noise from opportunists and social media evangelists. In our Cryptocurrencies’ report, we examined what has driven the hype, potential ESG problems and whether there is a compelling functional use case for corporates.

 

The right owners for value creation

In The ideal owners’, we examined who owns large European listed companies and how ownership differs between countries. We identified institutional investors, strategic entities, government and private equity as the main types of ownership and analysed whether their agendas differ and whether the type of owner has an impact on long-term shareholder value creation.

Podcast: Nordea On Your Mind highlights of 2021

Listen to the connected podcast episode, where Johan Trocmé and Viktor Sonebäck reflect back at an eventful year, and re-visit the Nordea On Your Mind themes of the year. What do they have in common, and will 2022 see more COVID-related themes?

 

Johan Trocmé and Viktor Sonebäck

If you are a corporate client and want to access the full Nordea On Your Mind report, please contact Viktor Sonebäck.

Don’t miss our other Nordea On Your Mind content:

See the full range of publications from Nordea On Your Mind here.

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