Credit spreads to widen over double-dip concerns, IACPM survey finds

Credit spreads likely will widen over the next three months as lenders are concerned that the economy may stumble, according to the International Association of Credit Portfolio Managers' Quarterly Credit Outlook Survey. Efforts to reduce budget deficits around the world could hinder the global economic recovery, while portfolio managers fear commercial real estate defaults and weak economic growth will keep companies from meeting their debt obligations. "In the short run, many of our members are concerned about economic conditions as governments cut back on spending to fight rising deficits," said Som-lok Leung, executive director of IACPM.

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