Findings from Fitch Ratings' Q4 201717 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:

  • 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