Every third fund manager sees recession in 12 months, says Bank of America

Most fund managers believe a trade war between the US and China remains the biggest tail risk

Investment managers are worried as they expect the global economy to slip into a recession within the next 12 months, reveals the latest survey by Bank of America Merrill Lynch (BAML).

About 34 per cent of investors believe a recession is likely in the next one year. This is the highest recession probability in eight years, according to the BAML survey.

Most global financial markets have witnessed turbulence in recent weeks with the US bond yield curve inverting. This term is used when long-term bond yields fall below short-term, a harbinger of recession. Bond yields in most other developed countries