“We’re on alert that things can happen in the credit market,” Torgeir Stensaker, who oversees EUR 13 billion as the Norwegian head of fixed income at Nordea’s investment management unit, said in an interview. “It could be 6, 12 or 18 months. But we feel that it isn’t sustainable in the long run.”

With that in mind, Stensaker has scaled back Nordea’s exposure to companies outside the finance industry. At the same time, he’s ensured that Nordea is more exposed, relative to its entire portfolio, to larger Norwegian banks. It’s the latest sign pointing to broader fears that corporate bonds have long been trading at unrealistically pricey levels. Stensaker says