Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The proportion of U.S. credit card and auto loans that became delinquent increased in the fourth quarter, signaling increased financial distress among consumers, the New York Fed said Tuesday in its quarterly report on household debt and credit.
Roughly 8.5% of credit card balances and 7.7% of auto loan balances transitioned into delinquency in the fourth quarter at an annualized rate. Auto delinquency transition rates have surpassed pre-pandemic levels and are particularly bad for lower-income areas, New York Fed researchers said. Borrowers in their 30s are also seeing much faster rates of falling into delinquency on credit card balances, the researchers said. Overall delinquency rates rose to 3.1% after bottoming in 2021, but are still 1.6 pp lower than before the pandemic. (See: MNI INTERVIEW: Fed Overtightened But Will Wait 'Til May-Harvey)
Source: New York Fed Household Debt and Credit Report
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.