The average interest rate on US credit card balances has spiked to 20.7%
With data going back to 1994, that's the highest rate we've ever seen. Meanwhile, delinquency rates on credit card loans from small lenders are now at an all time high of 7.1%. That's above the 6.0% peak in 2008 and up sharply from 3.8% in 2020. Source: Charlie Bilello, The Kobeissi Letter
US interest expenses have surged by about 50% in the past year, to nearly $1 trillion on an annualized basis
Source: Lisa Ambramowicz, Bloomberg
Note that US Sovereign risk (aka CDS on 1-year US Treasury) was completely unmoved by the Fitch downgrade.
Source: Bloomberg, www.zerohedge.com
Who is left in the AAA club? (the US is now split-rated AA+)
Source: Jim Bianco, Bloomberg
The US bond Market has now been in a drawdown for 3 years, by far the longest in history
Source: Charlie Bilello
US Treasury 10-Year yield increases to highest level since november 2022
Treasuries fell across the curve, pushing the 10-year yield to the highest level since November as traders digest an uptick in US government issuance, a sovereign credit downgrade and a stronger-than-expected private job report.
Source: Bloomberg
US Credit rating by agency
Moody's: Aaa S&P: AA+ Fitch: AA+ Source: Evan
Total US debt levels are expected to rise from 98% of GDP in 2023 to 118% of GDP in 2033
By 2053, Debt-to-GDP in the US is expected to hit an alarming 195%. Hopefully yesterday's downgrade of the US credit rating brings some more attention to this topic. Source: The Kobeissi Letter
