US credit card delinquency rates are now at their highest on record, according to the Philadelphia Fed.
In Q4 2023, more credit card balances were 30+ and 60+ days past due compared to any other period in history. The percentage of credit card balances at least 30 days past due is now ~3.5%. Meanwhile, total credit card debt has skyrocketed in recent months and is now at a record $1.3 trillion. The average credit card interest rate is also at record 28%, according to Forbes. Source: The Kobeissi Letter
The largest US banks are set to earn higher profits than expected this year
As the Federal Reserve looks likely to make only modest cuts to benchmark interest rates. Source: FT
Credit card Rates Keep Climbing to Reach Unprecedented Levels
Source: Bloomberg
Just as everyone forgot, banks continue to carry alarming amount of unrealized losses.
In Q4 2023, unrealized losses on investment securities for banks hit $478 BILLION. This compares to over $100 billion of unrealized GAINS seen in 2020 when the Fed started cutting interest rates. Meanwhile, the Bank Term Funding Program has officially expired. This was the emergency loan program established during the regional bank crisis. Who will step in now? Source: The Kobeissi Letter
us bank deposits have stabilized and risen since the 2023 banking panic, showing that confidence is slowly returning.
Source: BofA, Markets & Mayhem
Major U.S. Banks, by Commercial Real Estate Exposure
This graphic shows the 20 largest U.S. banks by assets, and their exposure to commercial real estate as a percentage of total loans. source : visualcapitalist
BREAKING: New York Community Bank stock, $NYCB, rises 20% after announcing $1 billion capital raise.
The stock is now up 125% from its low of the day seen just 2 hours ago. Completely normal behaviour for a bank with $100 billion+ in assets. Source: The Kobeissi Letter
Bloomberg reports that New York Community Bancorp plans to announce an equity investment of more than $1 billion
Led by Steven Mnuchin’s Liberty Strategic Capital, Hudson Bay Capital and Reverence Capital Partners, according to a spokesperson for the bank.
