Risk profile under threat

By Dylan Emery The European credit markets are set to take a nosedive in quality, threatening to seriously disrupt the risk profile of corporate bond investors, according to Credit Suisse Asset Management (CSAM). Benchmarking will ensure that fund managers will follow suit with their portfolios even though they should be looking for lower-risk alternatives like emerging European government debt. Ratings agencies have been gradually lowering the credit ratings of both new and existing issues for several years now but the investment banks have continued to puff every new issue, dulli...