We have been chatting about a potential bubble in the conventional markets. This article focuses on the leverage that has taken over the market. Here are some interesting facts from a report on US credit market activity…
• Total (financial and non-financial) Credit jumped $484bn during Q1 to a record $59.399 TN, or 347% of GDP.
• Total Non-Financial Debt (NFD) expanded at a 5.0% rate.
• Corporate borrowings grew at a robust 9.3% pace
• Federal government debt mounted at a 7.1% rate
• Consumer credit rose at a 6.6% rate
• Household net worth surged $7.98 TN, or 10.8%, over the past year.
• Over the past four years, household holdings of financial assets have surged $22.0 TN, or 49%, to a record $67.2 TN.