Fitch: Australian investors concerned over housing slump & Eurozone risks

According to Fitch Ratings latest survey (Q2 2017) of Australian fixed-interest investors, a domestic housing-market downturn remains the key concern amongst the investors, Reuters reports.

Key findings from the Survey via Reuters:

High household debt and further strong house-price gains are fuelling Australian investor's concerns around a domestic housing-market downturn

Investors also believe developments in the Eurozone now pose a greater risk to Australian credit markets than a China hard landing.

Australia is facing mildly tougher economic conditions

Fixed-income investors outlook for three key economic indicators suggests the next three years will see modest interest rate increases, a drift to slightly higher unemployment and house price declines

Investors believe banks are better placed to manage risks following steps taken to strengthen bank balance sheets and tighten lending standards

Property market exposure ... the proportion ranking it as 'critical' has dropped to 30%, from 43% in previous 4Q16 survey

Corporate Australia's credit profile is also expected to strengthen, with more investors taking the view that corporates will deleverage