From Investing.com: 2024-04-11 08:15:35

Portfolio and asset managers at major financial institutions are pessimistic about global credit conditions, with expectations for increased corporate defaults in the near future, as per a survey by the International Association of Credit Portfolio Managers. 51% anticipate defaults in North America, while 57% foresee this in Europe. Some expect lower income U.S. consumers to experience stress. Despite this, only 25% of survey participants expect a recession in North America this year.
According to the IACPM survey, 37% of respondents predict a recession in Europe this year, with 19% believing the region is already in one. While overall credit spreads are expected to widen, investment-grade corporate spreads in North America are projected to tighten by the end of the year.
Some financial institutions believe that current credit spreads are in line with economic and market cycles, despite having tightened significantly in the first quarter of the year, according to Som-lok Leung, the IACPM’s executive director.



Read more at Investing.com: Global credit outlook for 2024 worsens, new survey finds By Reuters