...Eurozone Recovery Hopes: Only just over a quarter of survey respondents remain concerned over eurozone debt problems ¡ the lowest reading in four years. Nevertheless, only 20% think eurozone tail risks are negligible. A majority instead see tighter peripheral yields meaning inadequate risk compensation. Inflation Concerns Minimal: European investors do not fear inflation, despite the gradual economic recovery and the substantial global monetary stimulus since the start of the crisis. Only 4% of those polled view inflation as a high risk; deflation remains a more serious threat according to 44%. Geopolitical and EM Risks: Investors remain focused on emerging-market (EM) concerns which have replaced the eurozone sovereign debt crisis as the biggest threat to European credit markets. This has been prompted by the Ukraine crisis which has highlighted geopolitical risk. However, sentiment towards EMs became somewhat less bearish in the latest survey. Banks Turn the Corner: Two-thirds of participants...
