Investors do not expect the wall of money that has flowed into the credit market for most of the past year to dissipate anytime soon despite risk premiums on bonds falling on the back of such voracious demand, fuelling fears of a “bubble” in the asset class.

In the latest credit investor survey by BofA Merrill Lynch Global Research, some 75% of respondents, mostly investment managers, said they expect cash inflows into their funds to continue even though credit spreads, or yields over government bonds, have declined dramatically, reducing returns.