Institutional investors expect another big financial firm will collapse within the next six months in the continued fallout from the credit crunch, new research has shown. Nearly 60% of US and European institutional investors surveyed by Greenwich Associates believe there will be such a failure within the next six months. Another 15% think it will happen in six to12 months. The investors feared that the knock-on effects of collapse of a big financial institution on the credit derivatives market would pose a “serious threat” to global markets. The survey, to be issued this week, polled 146 institutions including banks, hedge funds and investment managers in the US, Canada and Europe.

This entry was posted by Gwen Robinson on Tuesday, August 12th, 2008 at 5:18 and is filed under Capital markets. Tagged with Greenwich. Edit this entry.