Since January 2018, Erik Penser Bank has chosen to hold a large part of its shares and bonds in foreign currencies instead of the krone. Jonas Thulin, head of asset management at Erik Penser, describes it as “indirectly shorting the krona”, i.e. betting on the krona exchange rate to fall.
– We earn approximately two percent per year in extra returns, and it is in the magnitude of hundreds of millions of kroner, says Jonas Thulin in Economic Agency.
Strong krone would have been “worse”
He believes that the gloomy economic situation and high level of indebtedness will lead to more foreign outflows from the Swedish stock exchange and a continued falling krona.
– We have the crown we deserve. As a country, we are no more attractive to investors.
How does it feel that you are making money from the fact that things are going badly for Sweden?
– I don’t think you should see it that way. Then you put in feelings that have nothing to do with the matter, says Jonas Thulin.
Not the first time
He believes that a stronger krona would have been worse for the economy.
– All manufacturing and export companies should be happy about the krone development.
It is not the first time that investors have bet on the fall of the krone. Hungarian-American financier George Soros made a billion dollars shorting the krona in the 1990s.
Don’t miss Ekonomibyrån’s latest episode Shit country Sweden in SVT Play.