Sweden’s Bond Market Is Drawing Global Attention

Sweden's government bond market is expanding at a rapid pace, and international investors looking for exposure to one of Europe's more stable sovereign issuers are increasingly finding an active environment in Stockholm.

Meanwhile, Sweden’s high yield credit space and fast- growing defense industry are driving growth and international participation in its primary debt capital markets. From growing scale‑ups to established industrial players. The market is increasingly attracting foreign issuers and investors, which boosts liquidity, competition, and access to capital — and strengthens Sweden’s position as one of Europe’s best‑functioning capital markets. 

Nasdaq has been an integral part of the Nordic fixed income ecosystem for decades, offering services that span the full value chain: listing bonds, operating the marketplace, and post-trade services like trade reporting and clearing of fixed income derivatives. That infrastructure is now serving as the backbone to the dynamic growth occurring in the Swedish bond market.

A new dynamic in the Swedish government bond and derivatives market

Sweden's fiscal posture has changed considerably in recent years. Rising defense expenditures, a general fiscal deficit due to countercyclical fiscal measures, and a growing volume of publicly financed energy and infrastructure projects have contributed to a meaningful increase in government bond issuance. After an extended period of relatively low supply, Swedish government bonds are once again in focus.

Why had that market been dormant? According to an article about Stockholm's capital markets published in The Economist in late 2025, Sweden's Riksbank held interest rates at or below zero between 2015 and 2021 while simultaneously purchasing large volumes of government bonds—effectively suppressing trading activity. Foreign ownership of Swedish government bonds had historically totaled around half of outstanding volume; it declined to around a quarter during this period.

Daily volatility on ten-year Swedish government bonds averaged just three basis points during that period. The combination of near-zero rates and central bank ownership left little room for active participation, and many international traders looked elsewhere.

That dynamic has since reversed. The Riksbank has raised rates and sold most of its bond holdings, and issuance volumes have moved sharply higher. Annual issuance came to 45bn SEK in 2023, rose to 118bn SEK in 2025, and The Swedish National Debt Office has projected issuance of well over 200bn SEK in 2026 and 2027, according to The Economist.

The country's appeal to international allocators also rests on structural factors: low public debt relative to peers, a stable economy, and a central bank with a credible track record.— These characteristics reflect the broader dynamics of Sweden’s financial ecosystem.

One segment of the Swedish fixed income market that has seen a material increase in volumes in recent times is the Swedish government bond futures market. Nasdaq operates a suite of futures contracts that offer an exposure to Swedish government and covered bonds. Open interest in the Swedish government bond futures has increased by 40% in the last three years.

High yield bonds: Another source of growth

While the government bondmarket is set to grow, the high yield bond market in Stockholm has also matured into a significant source of capital, attracting issuers from a range of sectors and geographies.

According to research from one of the regions’ leading investment banks Pareto, in 2025, the Nordic high yield market accounted for more than 17% of total European high yield issuance volume in relation to GDP, a substantial share given the region's overall size. The issuer base has expanded beyond Scandinavia: five German companies listed bonds on Nasdaq Stockholm in 2025, including Munich-based DSI Holding (DYWIDAG) and Berlin-based TIER Mobility, which operates the e-scooter brand Dott.

The Nordic bond format is known for its operational efficiency, both in terms of cost and execution speed. A network of arranging banks and advisers, centered in Stockholm, supports the listing process, giving issuers a well-defined path to market. At the same time, there are clear transparency standards and governance requirements.

Bonds funding European defense

As European defense spending rises, Nasdaq Stockholm has moved to create dedicated infrastructure for the bonds financing it. In 2025, the exchange introduced the Nasdaq Defense, Resilience and Infrastructure Bond Criteria, Europe’s first voluntary transparency standard for bond issuers financing projects strengthening the defense, resilience, or infrastructure of EU or NATO member states, or of countries that formally participate in their cooperation frameworks. The framework encompasses governments, public authorities, non-financial corporates and financial institutions with qualifying defense-related investment needs.

The first issuer under the framework is Valstybės Investicinis Kapitalas, a Lithuanian state-owned strategic investor that listed its bond on Nasdaq Vilnius in October 2025. The issuance is structured under a €400 million Euro Medium Term Note program, with a portion of proceeds earmarked for Rheinmetall's first manufacturing facility in Lithuania.

A full-service infrastructure for Nordic fixed income

Sweden's borrowing needs remain elevated and the Nordic high yield market continues to attract broad interest. Nasdaq offers a comprehensive suite of services in the Nordics. Issuers can list bonds on a Nasdaq venue, trade on a Nasdaq-operated exchange, and clear through Nasdaq's post-trade infrastructure.

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