Charts of the Week
Consumers Use 23% of Credit Limit
May 15, 2020
Credit limits in the U.S. have surpassed pre-crisis levels, but utilization rates remain low.
Credit limits in the U.S. have surpassed pre-crisis levels, but utilization rates remain low.
Student loan debt has grown at an astronomical rate since the financial crisis.
Stock and corporate bond markets have stalled in the last month. Only the six FAANMG stocks are moving forward. Is the bear market rally over?
People under 30 hold a relatively small amount of debt compared to other age groups. Student loans make up the largest portion of their debt.
The percentage of consumers with debt at a collection agency has fallen over the past couple years, although the average collection amount has risen over the same period.
Household debt broken down by delinquency status
The first quarter saw $662 billion in mortgage origination, just off last quarter's level that was the largest since 2005.
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Today's topics include the Fed's survey of economic well-being, blurred lines between fiscal and monetary policy, more tales from the restart, inflation expectations, missed mortgage payments, travel bubbles?, QE and the markets, and bets on negative rates or hedging?
Jay Powell insists the Fed will not resort to negative rates. He is sincere, but the market is beginning to have other thoughts and may force his hand.
Today's topics include estimating the unemployment rate, bond ETFs' NAV, Trump vs. Wall Street, infinite stimulus, financial engineering at its best - EBITDAC, problems arise with new mortgage market rules, the CFTC issues warning as June crude oil expiration nears, and banks' loan loss models.