Fed hikes continue to push delinquency rates higher on credit cards and auto loans.
Also, Fed hikes continue to push higher default rates for HY and loans. And interest coverage ratios are moving down for both IG and HY.
The bottom line is that higher interest rates are biting harder and harder on consumers and firms, and the Fed’s ongoing efforts to cool down the economy will continue. There are more downside risks than upside risks to markets, see overview below.
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