Q4 2017 fixed-income investor survey – Fitch

The US-based ratings agency, Fitch Ratings, out with the results of its Q4 2017 fixed-income investor survey:

A China downturn has moved back into the top spot of Australian credit markets risks over the next 12 months (42% of respondents ranking a hard landing as a high risk, up from 25% in 2Q17)

China replaces a domestic housing market downturn as the top risk (dropped to third)

The prospect of quantitative easing (QE) withdrawal has moved into second place

More investors (43%) expect fundamental credit conditions to deteriorate for financials, rather than improve (16%)

Property market exposure is still considered the main threat to bank asset quality, although risks were broadly considered to be rising

Most investors also expect bank lending conditions to tighten over the next year

Investors are more upbeat about the economic outlook