All posts tagged: credit

Kashkari & Consumer Credit Curtail Stock & Bond Gains

Kashkari & Consumer Credit Curtail Stock & Bond Gains

[ad_1] Another quiet macro day (although an ugly picture was painted late on by the unexpectedly weak revolving credit increase – potentially signaling a US consumer who really has hit their limit). Some FedSpeak wiped a little lipstick off the early pig’s squeeze higher as Kashkari seemed to offer both sides some hope (but it spoiled the fun with the ‘we could hike’ line): “It’s a little too soon to declare that we’re definitely stalled out [on disininflation],” Kashkari says on Bloomberg Television. “The most likely scenario is we sit here for an extended period of time,” he added later at the Milken Institute Global Conference. “If inflation starts to tick back down or we saw some marked weakening in the labor market then that might cause us to cut back on interest rates.” “Or if we get convinced eventually that inflation is embedded or entrenched now at 3% and that we need to go higher [in rates], we would do that if we needed to,” he added. Stocks reversed their gains (leaving only squeezable …

Credit Smacks Of Complacency As Spreads Collapse

Credit Smacks Of Complacency As Spreads Collapse

[ad_1] By James Crombie, Bloomberg Markets Live writer and strategist Wafer-thin spreads on corporate debt don’t matter — until they do. There are several potential triggers for risk premia to flare, denting credit portfolios. Spreads have collapsed across the board, from investment-grade and junk bonds to collateralized loan obligations. The extra yield investors get for owning US high-grade corporate debt instead of government bonds is the lowest in two-and-a-half years. At less than 90 bps, that’s far below the five-year average of about 120 bps. As a percentage of all-in yield, it’s the least since 2007. Such narrow risk premia reflect booming demand for limited net new supply of corporate bonds, plus a general lack of concern about the macroeconomic outlook. And since the Federal Reserve bailed out corporate bonds during Covid, there’s a perceived central bank backstop underpinning the debt. Buyers have been lulled into thinking this is the new normal, but such a paltry yield pickup doesn’t adequately reflect rising corporate credit risk. So when volatility returns to jolt investors from their slumber, expect credit risk premia to flare, slamming portfolios. Credit …

Young voters don’t give Biden credit for historic climate bill

Young voters don’t give Biden credit for historic climate bill

[ad_1] WASHINGTON —  President Biden spent his Earth Day in a national forest this year with an explicit pitch to young people: a climate jobs corps intended to excite Gen Z the way John F. Kennedy’s Peace Corps inspired their grandparents. Biden took a selfie with Rep. Alexandria Ocasio-Cortez, the progressive New York Democrat, to remind voters that he was the first president to truly embrace elements of her Green New Deal, signing a signature $369-billion spending package in 2022 — the biggest climate bill in American history — to ignite the renewable energy revolution. But Biden isn’t reaping the political benefits. His lead over former President Trump among voters younger than 30 is down since 2020 — when he won that group by 24 percentage points. His current lead among those younger voters is somewhere between the single digits and high teens, according to a variety of polls. The Harvard Youth Poll conducted in March found Biden leading by a 19-point margin but found Trump voters (76%) were far more likely to say they were …

Where Is “Growth” Coming From? Fed Says Banks Tighten Credit Standards While Loan Demand Drops Further

Where Is “Growth” Coming From? Fed Says Banks Tighten Credit Standards While Loan Demand Drops Further

[ad_1] The first quarter Fed’s Senior Loan Officer Opinion Survey (SLOOS) – the one place where every three months investors go to find information on changes to both loan demand and bank lending tightness – was released and revealed more of the same: despite daily propaganda of economic improvement, the SLOOS found that more US banks reported stricter credit standards in the first quarter, while loan demand declined. As a reminder, without ease credit and without rising loan demand, it is virtually impossible for an economy – especially one that is as financialized as the US – to grow; and yet we are bombarded day after day with lies to the contrary. Taking a closer look at the SLOOS survey which was conducted between March 25 and April 8, we find that the net share of US banks that tightened standards on the all important C&I (commercial and industrial) loans for mid-sized and large businesses rose to 15.6% in the first three months of the year, from 14.5% in the fourth quarter. Other types of loans that …

Snag This Incredible Deal and Get 0 of Restaurant.com Credit for Just

Snag This Incredible Deal and Get $200 of Restaurant.com Credit for Just $35

[ad_1] Discounted gift cards are always a great deal. It’s basically like you are earning free money. With inflation and the high costs of eating out, any money you can save is a nice bonus. For a limited time only, the folks at StackSocial are offering a $200 Restaurant.com gift card for just $35, which means you’re essentially getting $165 in free credit. There are other options for you to save on lesser value gift cards as well. Buying an e-gift card from Restaurant.com is convenient because your credits will never expire, and they can be applied anywhere on the website, whether you’re dining in or ordering takeout or delivery. Several e-gift card options are available at StackSocial right now: After you select this deal, just head to Restaurant.com to redeem your code, then search for participating restaurants near you to see what’s available. With more than 500,000 deals available every day, you’ll likely find something to satisfy your cravings at a fraction of the cost. Restaurant.com also partners with Edible Arrangements, in case you’re …

DWP review warning issued to people on State Pension, PIP and Universal Credit

DWP review warning issued to people on State Pension, PIP and Universal Credit

[ad_1] The Department for Work and Pensions (DWP) has issued an ominous review warning to people claiming a variety of payments from the Government. More than 20 million people across Great Britain are claiming State Pension or at least one benefit from the DWP to help with the additional costs of day-to-day living. But the UK Government has been clear it will crackdown on those exploiting the benefits system as they are ‘stealing from those who most need help’. The latest Department for Work and Pensions (DWP) figures indicate that fraud and error in the benefit system is falling after the UK Government restated its determination to drive levels down further and protect taxpayers’ money. The most-recent national statistics show that in the 2022/23 financial year, fraud and error rates fell to 3.6 per cent (£8.3 billion) from 4.0 per cent (£8.7 billion) – figures for 2023/24 are due to be published next month. During the 2024/25 financial year – which starts this weekend on April 6 – the DWP will measure a sample of …

Chase Sapphire Preferred Card vs. Capital One Venture Rewards Credit Card

Chase Sapphire Preferred Card vs. Capital One Venture Rewards Credit Card

[ad_1] The Chase Sapphire Preferred® Card and Capital One Venture Rewards Credit Card* are two of the best travel credit cards. They both have a $95 annual fee and good welcome bonuses, but the reward structures and redemption methods differ considerably.  While the Venture Rewards card may be better for users who prefer simplicity — thanks to its flat rewards rate on purchases — most cardholders will be able to net more overall value from the Chase Sapphire Preferred Card due to its unique rewards and redemption structures. And while the Venture card may have some travel perks that look appealing on first glance — like Capital One Lounge access — there are some stipulations to consider. Comparing annual fees Winner: Tie Both the Venture and Sapphire Preferred have a $95 annual fee, so this is a clear tie. These cards are cheaper than “premium” cards with annual fees in the $500-$700 range, but $95 is still a significant chunk of change. You should expect better value than credit cards with no annual fee, and you’ll get it if …

US updates EV tax credit rules, enabling more electric cars to be eligible

US updates EV tax credit rules, enabling more electric cars to be eligible

[ad_1] The U.S. Department of the Treasury and Internal Revenue Service (IRS) updated the EV tax credit rules today with new requirements that should enable more electric cars to become eligible. Even though it has been in effect for over a year, the US has still been frequently updating its reformed federal incentive for electric vehicles. Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) announced the final rules for the program. The reform launched in 2023 brought many important changes, primarily removing the limit of 200,000 vehicles per manufacturer and adding eligibility criteria for EV buyers and EV MSRPs to limit the tax breaks for the rich to buy expensive vehicles. Those changes were intended to address the program’s fairness, but the Biden administration also introduced new protectionist initiatives at the same time. It required for the vehicles to be assembled in North America to get the credit. It also requires gradually higher percentages of battery materials and components to be produced in North America and in countries with free trade …

‘You Didn’t Do It!’ Minister Slapped Down By Major Economist After Taking Credit For Inflation Drop

‘You Didn’t Do It!’ Minister Slapped Down By Major Economist After Taking Credit For Inflation Drop

[ad_1] Joseph Stiglitz fact-checked Bim Afolami on BBC Question Time over inflation BBC Question Time A minister was fact-checked by a leading economist on BBC Question Time last night after he tried to take responsibility for the recent fall in inflation. The award-winning Joseph Stiglitz needed just four words to take apart Bim Afolami, the economic secretary to the Treasury: “You didn’t do it.” The key moment arose when the minister began blaming the UK’s financial woes on the combined effect of the Covid pandemic and Russia’s invasion of Ukraine. He said: “I think that made things very very challenging. Inflation went up globally. “Now, we’ve worked very hard, in partnership with the Bank of England – it’s not all down to the central banks, but they have a key role to play – interest rates did go up and have gone up.” “Affecting the cost of living,” Stiglitz interjected. “Of course,” Afolami continued: “We’ve brought inflation down from 11.1% to 3.4, 3.2%.” The economist cut in again: “You didn’t do it, the market did it.” The …