Risk perception review (credit investors) -

According to latest survey by Bank of America Merrill Lynch (BofAML), credit investors are most worried over China. While in November Survey it showed little less than 60% were worried over China, now almost 8 in 10 managers are worried most on China.

Drop in oil price came as not too distant second, with more than 70%, worried over it. Compared to November, increase risk perception from oil price has surpassed that of China.

About half of investors are now worried over Geo-political risks.

Concerns have risen significantly over currency war and double dip recession or deflation.

Other areas where risk perceptions rose are slow economic recovery and Sovereign crisis.

Compared to November, concerns over asset bubble, rising interest rates, re-leveraging event risks, US fiscal policy, Trade war and inflation have soothed.

Correlation suggest, China's economic slowdown, equity selloffs and currency depreciation, coupled with lower oil price have been biggest mover of asset prices.