Friday , August 19 2022

The fear of a global recession emphasizes the credit market



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Bank of America's survey, Merrill Lynch, showed that around 30% of respondents were worried about a global crisis in the long run.

The risk of global recession has climbed to the place and the highest place on the list of concerns of credit investors, even though they reduce their cash jobs to buy debt in new issues this year, After the latest survey of European funds managers.

Nearly 30 per cent of respondents mentioned in the global economic crisis bank's survey as the main concern, the largest risk for one risk since June 2017. None reported an increase in bonds or higher inflation, while it was only 2 per cent referring to Brexit, according to analysts led by Barnaby Martin.

European investors have been accruing credit so far this year, adding corporate hybrids, undergraduate bank insurance and debt plus defensive jobs in public services, according to BAML. This has reduced cash allocations to 3.5 per cent and has made most investment-level debt managers feel that spreads too tight, the bank said.

Investors are also skeptical that another round of cheap European Central Bank funds to the lenders will give a big boost and consider that the policy has communicated with such clarity which is already being accounted for at the price.

BAML carries out customer surveys, including banks, insurance companies, pension funds, asset managers and hedge funds every two months for its credit investor survey. There were 58 participants in the last issue.

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