Trade body survey shows credit portfolio managers full of optimism

The latest survey from the International Association of Credit Portfolio Managers shows that bank loan portfolio managers are now at their most positive since December 2010.

The quarterly survey asks IAPCM members, who manage primarily corporate credit portfolios for financial institutions, about their views on the expected direction of credit spreads.

More than half of respondents expect US investment grade spreads to tighten in the next three months, and 57% expect US high yield spreads to tighten.  This represents a sharp improvement in sentiment from September, when IAPCM members expected spreads to widen across credit. This optimism also extends across Europe, with 49% of respondents expecting iTraxx Europe to tighten as well.

Full details of the survey can be downloaded here.