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2020 Q4 Credit Outlook Survey-IACPM News Release

IACPM Members Say Stimulus is Stabilizing Loan Portfolios; Latest Survey Finds Reduced Concern About Next 12 Months But Longer Term, Will Stimulus Lead to Inflation and Higher Interest Rates?

New York, NY – Members of the International Association of Credit Portfolio Managers say waves of government stimulus have bailed out companies hard hit by the pandemic and stabilized their corporate loan portfolios. At the same time, though, members are concerned about the long-term impact of so much stimulus as the mammoth amount of liquidity could ignite inflation and lead to higher interest rates.
“Our members are increasingly concerned about the long-term impact of all the stimulus,” noted Mr. Leung. “What will be the impact on inflation, on interest rates and what will that mean to our banking clients? Low interest rates are helping them now but what happens if or when rates rise?”