IACPM Survey Respondents See Limited Credit Problems in their Portfolios Currently but, as Bond Yields Rise Globally, They’re Ex- pecting Higher Defaults and Wider Spreads
New York, NY – Responding to the latest IACPM Credit Outlook Survey as 10-year US Treasury yields were surging higher and even before an unexpectedly strong US employment report was released or war in Israel broke out, survey partici- pants forecast the worst is yet to come in terms of credit problems. Respondents, who are members of the International Association of Credit Portfolio Managers, say they are currently seeing limited evidence of trouble in their portfolios, but most expect to see rising credit defaults globally over the next 12 months. In the latest reading, the IACPM Credit Default Index is minus -59.9, a sharply negative value. At the same time, the IACPM Credit Spread Index also predicts wider spreads, but members note market moves have already pushed spreads wider, thus covering much of their forecast.