Swedish Brilliance in EBA Tests Underpins Riskiest Debt Appeal

After topping the European Banking Authority’s stress tests, Swedish banks may be a good place for investors to snap up high-risk bonds.

With an average common equity Tier 1 ratio of 18.1 percent in the adverse scenario, banks in Scandinavia’s largest economy did better than their competitors across the rest of Europe. The results, which were published after markets closed on Friday, ranked Swedbank AB the top performer among publicly traded banks. Its overall ranking in the test, which assessed 51 banks in an adverse scenario, was No. 2 after German development bank NRW.Bank, which isn’t listed on a stock exchange.