An association of fund managers has issued a dire prediction about the growing risk of credit defaults, warning that central bank interest rate hikes will trigger a wave of corporate defaults as borrowing costs soar and the threat of a global recession looms.
Not a single member of the International Association of Credit Portfolio Managers (IACPM) expressed the view that corporate defaults would decline, according to the latest quarterly survey carried out by the group and released on July 14.
“Rather, an overwhelming majority believe defaults will rise in North America, Europe, Asia and Australia,” IACPM said in a statement.
The survey was conducted among the association’s members, which include portfolio managers at many of the world’s biggest commercial banks, investment banks, and insurance companies….