Investors in credit derivatives expect spreads or risk premiums to widen further over the next couple of months as fears escalate over the impact the ravaged housing and structured finance markets will have on the banking sector and broader global economy, according to new research.

Buyers are concerned about the expectation of greater spread volatility over the next few months due to the threat of economic slowdown and further fallout in the bank and bond insurance sector, said a survey of credit derivative investors from Bear Stearns.