Sentiment on Credit Spreads is Still Negative
By Bondsquawk
According to JP Morgan’s Credit Investor Survey on June 21, 2012, published by their North America Credit Research team bearish sentiments among institutional investors across the United States have decreased for the month of June compared to the month of May.
The Spread Outlook has had a remarkable improvement from its May Performance as the negative outlook went down by 28% to 36%. Neutral outlook and Positive outlook increased by 18% and 10% respectively. Although the overall sentiment is still negative it is hovering around at a relatively stable level of 0.83. An interesting thing, however, was that the 4-yr average of the Outlook Index was 154.19% and the median being 132.84% which indicates that institutional investors have had a bullish sentiment for most of the last 4-years.
The chart below is a comparison of the Barclays Credit Index Spread movement with the movement of the JP Morgan Corporate Investor Sentiment.
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