BofA: Geopolitical tensions are the biggest concern for US credit investors
Geopolitical tensions have become the top concern for U.S. credit investors, according to a Bank of America (BofA) survey.
Geopolitical risks top the list of concerns among U.S. corporate credit investors, according to a new survey from BofA Global Research.
The finding coincides with the escalation of conflict in the Middle East. While geopolitical risks continue to be the most important source of concern expressed by investors, the rate of this risk increased to 80 percent in April, according to the announced survey.
But investors remain optimistic about corporate credit for investment purposes despite rising tensions.
According to the survey, only 18 percent of investors surveyed reported above-normal cash levels. This was recorded as the lowest level since September 2020.
According to the survey, although markets priced the Fed’s interest rate cut at 120 basis points over the next two years, investors cited inflation as the second biggest concern about the credit outlook.