Fund Managers’ Biggest Fear Is Now a Systemic Credit Crunch
- US shadow banking, corporate debt seen as risks: BofA survey
- Hartnett says the S&P 500 to find a floor at 3,800 points
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A systemic credit event has replaced stubborn inflation as the key risk to markets for increasingly pessimistic investors, according to Bank of America Corp.’s latest global survey of fund managers.
The most likely source of a credit event is US shadow banking, followed by US corporate debt and developed-market real estate, according to the poll, which canvassed 212 fund managers with $548 billion under management. A credit event was chosen by 31% of participants as the biggest threat.