Almost a third of European credit investors fear that the global economy is heading for recession, according to a client survey by Bank of America Merrill Lynch.
Investors’ biggest concern in February was a “global recession”, with 33 per cent of high yield investors and 28 per cent of high grade investors singling out the threat from 18 options. In the last survey, in December, it barely registered. Only three times in the past four years of the two-monthly survey has a single concern been more dominant.
“You can see why there was this pivot,” Barnaby Martin, credit strategist at BAML, said. “So many data points have plunged recently. Dutch industrial production, German industrial production, French industrial production, Korean exports have fallen materially year on…