The credit markets may struggle to find a “magic cure” for protracted woes this year, but while the global outlook for the asset-class is bleak, some credit analysts are optimistic conditions may start to improve in the second half, forcing credit spreads or risk premiums lower from their extreme highs.

In research notes to clients, credit strategists at European investment banks including Société Générale, Dresdner Kleinwort and Barclays Capital said the souring global economy is severely impacting the timing of any recovery in the markets, but that credit may begin to the thaw from the middle of the year.