Few taking high risks on the Swedish fixed-income and foreign exchange markets

Almost eight out of ten respondents consider the FX market for SEK to be working well or very well, which can be compared with last autumn, when almost six out of ten gave this response. The Swedish fixed-income market, on the other hand, is perceived to be functioning less well than in the autumn, but better than prior to the outbreak of the coronavirus pandemic. Four out of ten respondents consider the market to be working well. This is a decline compared with the autumn, when half of the respondents considered the fixed-income market to be working well.

The Riksbank’s asset purchases, which were introduced as a measure during the coronavirus pandemic, have had a large or very large impact on how the Swedish fixed-income market has functioned according to the respondents. Many respondents consider that liquidity and the way the market functions have deteriorated as a result of these asset purchases. But there are also several who point out that the asset purchases at the beginning of the pandemic stabilised the market, and some consider that the purchases are still having a positive effect on stability.