Economy
Credit Default Swaps & the Debt Ceiling
June 9, 2025
What is happening in the CDS market and why is the debt ceiling a critical factor in widening spreads?
What is happening in the CDS market and why is the debt ceiling a critical factor in widening spreads?
The Commitments of Traders report allows investors to gauge position changes for different groups of traders/investors.
Today's topics include converging asset yields, more on Friday's payrolls report, this week's Treasury auction schedule, waiting for news on Chinese trade negotiations in London, questioning the quality of U.S. economic data, how many rate cuts in 2025?, the dollar & the trade deficit, and Fedspeak
Nonfarm payrolls grew by 139k jobs in May, beating economists' estimates. As long as economic data stays in this middling ground, it affords the Fed the option of kicking the can further down the road.
Today's topics include tariff price impacts, how can we get lower rates?, markets will be the ultimate determinant of how much debt is too much, how far can equities go?, thoughts on the deficit, dollar bearishness, Japan & U.S. restart trade talks, Fedspeak, ECB reaching the end of its cutting cycle, alternative benchmarking & performance, and stablecoin risk & regulation
57% of households owning mutual funds make more than $100k per year.
Active equity mutual funds continue to charge more than 10x the fees of passive equity mutual funds.
Domestic equity index funds with the lowest fees saw the large majority of inflows in 2024.
44% of U.S. households own an IRA. The difference in ownership between the highest and lowest income buckets is staggering.
Equity ETFs accounted for 27% of stock market volume in the U.S. in 2024.