Credit Investors See Defaults Rising, 84% Chance of US Recession
- Health, medium-sized tech sectors face struggle, survey says
- Most fund managers see defaults rising in next 12 months
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Credit portfolio managers are forecasting a rise in corporate defaults in the coming year while more than four-out-of-five participants see a chance of a US recession in 2023, according to a survey by the International Association of Credit Portfolio Managers.
The poll found that 81% of fund managers see defaults picking up in the next 12 months, compared with 80% in the survey last December, as reduced bank liquidity and credit risk concerns land on top of macroeconomic issues. For North American corporates, 86% of respondents see defaults rising, while 91% see defaults rising in Europe.