MSCI ACWI was down by 2.5% in local currencies and 1.8% in DKK. The negative performance was driven by developed markets headed by the European markets. MSCI EM rose, however, by 1.5% in October, despite USD strengthening.

Credit spreads (i.e. the yield pick-up from investing in a corporate bond relative to a government bond) of European corporate bonds went up in the second half of October, but the month ended at largely unchanged levels. Credit spreads of investment grade bonds dropped by 2 basis points, while credit spreads of high-yield bonds increased by 3 basis points in October, prompting an excess return of 0.3% on investment grade bonds relative to comparable government bonds. High-yield bonds generated a return in line with comparable government bonds. The Danish 10Y government bond yield fell by 10 basis points to -0.5% in October.  

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