News Release - Credit Outlook Still Negative but Improving According to Latest

The outlook for corporate credit defaults is negative -27.5, which indicates more partici- pants expect defaults to rise rather than fall, but, at the same time, that is down from minus -56.0 in the last survey taken this past December. [...] “One of our members commented that it seems like we’ve entered a period of higher unrealized defaults.” While the outlook for corporate defaults is negative in North America, Europe, Asia and Australia, sentiment is mixed in each of these regions with different numbers of respondents more concerned about rising defaults than others. [...] The Credit Outlook Survey is conducted among members of the IACPM, an as- sociation of 138 financial institutions in 30 countries around the world. [...] Survey results are calculated as diffusion indexes, which show positive and negative values ranging from 100 to minus -100, as well as no change which is in the middle of the scale and is recorded as “0.0.” Positive numbers signify an expectation for improved credit conditions, specifically fewer defaults and narrower spreads, while negative numbers indicate an expectation of deterioration with hi. [...] The organiza- tion’s programs of meetings, studies, research and collaboration are designed to in- crease awareness of the value and the function of credit portfolio management among financial markets worldwide, and to discuss and resolve issues of common interest to its members.