And Nomura team said on 2018 "stealth.......>

US TSYS: And Nomura team said on 2018 "stealth leverage" as "if the economy

slows, the risk is that auto (loan) sector would get hit, but overall a pop here

is not likely to be systemic."

- They cited "another concern among those worried about the consumer is the high

levels of student debt" but it's led to more of a behavioral shift of less home

buying. But as wages rise, these debts will not all pop at once. This too is

less systemic."

- But they warn "financial leverage" is where "embedded leverage" exists as over

past 10 yrs, "fastest-growing debt was in capital mkts as seen in corporate debt

up roughly $3trn" with some of that "smart usage of debt, terming out to lock-in

low costs of funding, but much" of it "went into stock buybacks and/or to highly

leveraged corporates. The credit quality of the universe has moved towards BBB

and higher duration. A reprice of corporate credit when balance sheets are still

thin could indicate that meaningful risk lies ahead. Deeper under the surface

margin debt for stk purchases are also at all-time highs. Finally, some vol

selling strategies in ETF form could be the pinprick to passive investing."