We’re past the worst, say majority of big investors - Business - Evening Standard
       

We’re past the worst, say majority of big investors

A massive improvement in sentiment about the state of the financial markets emerged in a major survey of big investors by credit rating agency Fitch Ratings.

The majority of bond investors in Europe now believe the markets are past the worst of the disruption wrought by the global financial crisis, compared with just 29% at the time of Fitch's last quarterly survey three months ago.

The investors had also shortened their predictions about how long the recession would last, the survey showed, particularly in the recession-bound central and eastern European emerging markets.

Worries about the shortage of liquidity and further problems in the property market also eased considerably. The risk of each was scored as "high" by 27% and 23% respectively compared with 40% and 29% at the end of March. Over half of the respondents said it was "moderately" probable there would be major hedge fund collapse.

The study polled 62 of the 100 biggest European investing institutions.

Trevor Pitman, credit officer for the EMEA and Asia-Pacific regions at Fitch, said: "The availability of global liquidity remains the primary area of investor concern, although less convincinglyu so than in the previous quarter."

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