Fitch surveyed 100 respondents that represent $7.2 trillion of fixed income assets, on their concerns about the eurozone. Here's what they found on chances of a double-dip recession and a eurozone break-up:
- 80 percent said the risk of a double dip recession is high, up from 68 percent in the last survey.
- 53 percent think "fundamental conditions for banks will deteriorate".
- 82 percent think banks will need another long-term refinancing operation (LTRO) within the next two years.
- 5 percent think the eurozone will break up, while 33 percent think it will move towards a fiscal union.
- 9 percent think there will be multiple sovereign debt defaults but do not expect it to cause a break-up.
- 21 percent think Greece and one or two other countries could exit the union.
This chart shows what respondents think are the biggest risks to the European credit markets:
Note: 73% of respondents were credit portfolio decision makers on the buy side in western Europe, being either senior bond department heads, portfolio managers, or heads of fixed-income research teams. 27% were senior credit analysts, strategists or credit risk managers.Don't Miss: 7 Reasons September Is Going To Be A Huge Month For Europe >
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