Growth in Credit Card Debt Slowing Down
Growth in credit card spending is falling behind growth in debit card spending for the first time since the pandemic. The decline in credit card usage can be attributed to the rise in credit card...
Read MoreCategory Archives: Market Structure and Dynamics
U.S. Credit Rating Unchanged After Tariffs
The U.S. maintained its sovereign credit rating of AA+/A-1+ from S&P. In explaining their rating, S&P noted that the U.S.’s economic diversity and stable economic outlook should offset major fiscal declines. They also stated that...
Read MoreJuly CPI Report Released
The Bureau of Labor Statistics released the Consumer Price Index report for the month of July and found that inflation rose by 0.2 percent in the month of July and year-over-year inflation increased by 2.7 percent. These...
Read MoreActivities in Credit Markets Signal Economic Changes
Reuters reports that some large banks believe current credit prices overestimate economic outlooks and are vulnerable to market corrections. The value of credit spreads in the market currently implies a 5 percent global growth rate when...
Read MorePresident Trump Signs EO Allowing Alternative Investments in 401ks
On August 7, President Donald Trump signed an executive order (EO) allowing 401k plans to invest in alternative assets, including digital assets. The Financial Times reported that these changes will introduce 401k accounts to higher returns as well as...
Read MoreU.S. Consumers are Scaling Back Their Debts, According to Fed Data
Fed data suggested that U.S. consumers – particularly sub-prime consumers – are pulling back their spending. Net charge-offs on credit cards have dropped for the first time in three years, according to Q2 earnings reports....
Read MoreCanadian Securitization Market Remains Strong
The high savings rate from Canadian consumers has helped the Canadian securitization market withstand economic pressures from U.S. tariffs, a slow labor market, and high interest rates. Rating agencies have found that, despite minor credit...
Read MoreBanks See Risk in Frequent Use of BNPL
Until recently, Buy-Now-Pay-Later (BNPL) loans have not been reported to credit bureaus, leading to gaps in understanding how this product informs consumer credit outcomes. As BNPL products begin to be incorporated into credit scores, many...
Read MoreAmericans are Changing their Investment Strategy
The Associated Press (AP) found that Americans are investing more of their income into investment vehicles such as money market accounts and certificates of deposits. The report also noted how this may have helped US consumers combat inflation....
Read MoreU.S. Leverage Loan Market Takes off in July
On July 21, 33 offerings totaling near $61 billion in leveraged loans made their way to the market as firms tried to take advantage of lower borrowing costs. The session was significantly larger than in...
Read MoreCNBC: Inflation Rises in Line with Expectations
On July 15, the Bureau of Labor Statistics released their CPI report which found that inflation rose by 0.3 percent in June, with the 12-month inflation rate for June 2025 coming in at 2.7 percent, in line...
Read MoreFederal Regulators Encourage Financial Inclusion
Vice Chair for Supervision Michelle Bowman, at the Federal Reserve’s Financial Inclusion Conference, highlighted how novel credit scoring models and alternative data could be used to understand and expand credit and financial services to credit...
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