3 Aug 2023
Despite the strong upward move of the Citigroup US economic Surprises index and the strong YTD performance of financial assets, there are signs that things are that rosy for the SU economy
Source: TaviCosta
3 Aug 2023
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
3 Aug 2023
US interest expenses have surged by about 50% in the past year, to nearly $1 trillion on an annualized basis
Source: Lisa Ambramowicz, Bloomberg
3 Aug 2023
Note that US Sovereign risk (aka CDS on 1-year US Treasury) was completely unmoved by the Fitch downgrade.
Source: Bloomberg, www.zerohedge.com
3 Aug 2023
Who is left in the AAA club? (the US is now split-rated AA+)
Source: Jim Bianco, Bloomberg
3 Aug 2023
The US bond Market has now been in a drawdown for 3 years, by far the longest in history
Source: Charlie Bilello
2 Aug 2023
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
2 Aug 2023
US Credit rating by agency
Moody's: Aaa S&P: AA+ Fitch: AA+ Source: Evan
