Loan portfolio managers turn bullish on US credit

Credit portfolio managers at commercial banks have turned significantly more bullish on North American credit, while become increasingly negative on Europe, according to the latest survey by the International Association of Credit Portfolio Managers. On average, respondents expect investment grade and high yield credit spreads in North America to move tighter. This contrasts with the broadly flat view the last time the survey was conducted. On Europe, however, the survey shows that expectations have become more bearish compared to the previous quarter.