"Systemic Credit Crunch: The Biggest Fear for Fund Managers"

A systemic credit event has replaced stubborn inflation as the key risk to markets for increasingly pessimistic investors, according to Bank of America Corp.’s latest global survey of fund managers. The most likely source of a credit event is US shadow banking, followed by US corporate debt and developed-market real estate, according to the poll, which canvassed 212 fund managers with $548 billion under management. The poll showed investor sentiment is “close to levels of pessimism seen at lows of past 20 years,” with the likelihood of a recession rising again for the first time since November.