As of Friday, our composite RSM US Financial Conditions Index remained at 0.9 standard deviations below neutral, corresponding to higher levels of risk than would normally be priced into securities. … READ MORE >
credit default swaps
What would happen if the government defaults on its debt?
Policy brinksmanship over lifting the debt ceiling and the threat of default it brings is increasing the cost of doing business and carries far more risk than is commonly acknowledged. … READ MORE >
Fed survey shows a notable decline in loan demand
Roughly 56% of loan officers noted a decline in demand for loans by large and middle market firms, while 53% reported a decline in credit demand by small firms, according to the Fed’s quarterly Senior Loan Officer Opinion Survey released Monday. … READ MORE >
Measuring the risk of default in the debt ceiling crisis
The one- and three-year U.S. credit default swaps have already spiked above levels of previous financial and political crises. … READ MORE >