Swedish government securities are in demand because they have a low credit risk and are relatively easy to sell in the market. The low credit risk is due to Sweden being a stable country with solid public finances and an established fiscal framework.
As an issuer, the central government of Sweden has the highest credit rating, which means that the securities issued by the Debt Office are considered a very safe investment. The high rating is due to, among other things, Sweden’s fiscal framework, which includes:
- a cap on government expenditure
- a surplus target for the public sector
- a public sector debt that is restricted to 35 per cent of GDP.
The Debt Office’s strategies for contributing to making Swedish government securities attractive to investors include focusing on:
- promoting liquidity and market infrastructure
- communicating clearly and acting predictably.
The strategies as well as our implementation are evaluated annually through a survey of our primary dealers and of Swedish and foreign investors.