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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.
MARKET INSIGHT
- The speed and magnitude of rate hikes in this tightening cycle could be expected to show up as financial stress earlier in the cycle than would otherwise be the case, but that hasn’t happened so far.
- 30Y mortgage rates above 7% at early 2000 highs have heavily slowed housing activity, but widespread long-term fixings have shielded most home buyers from these increases.
- As such, MBA mortgage delinquencies actually fell 0.1pps to a new low of 3.5% in Q3 (average 4.2% 2019) [blue line, chart below].
- Separately, Bloomberg’s composite of credit card delinquencies may have increased further to 0.88% in Sept from a most recent low of 0.79% in Jun, but in trend terms looks almost flat this year and is notably below the 2019 average of 1.48% [orange].
- Much of this resilience comes back to the fact that the household debt service ratio remains comfortably below pre-pandemic levels, most recently at 9.6% in Q2 [green], despite the strength in consumer credit growth over the past year.
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.
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