Highlight of the Week
Car Debt is Piling Up as More Americans Owe Thousands More Than Vehicles Are Worth
- Average negative equity on trade-in vehicles is approaching pre-pandemic levels of $5,500
- Many consumers are purchasing cars at prices much higher than the actual value of the vehicle and rolling their debt from one car to another
- 2 out of 13 people have car payments of $1000 or more
- In January severely delinquent loans hit their highest rate since 2006
- As a result, many auto lenders are tightening their credit standards
10Y and 2Y Treasury Yields: Largest Spread Since 1981
- The 10Y-2Y spread is now at -90.4, a level that has not been seen in over 40 years.
- The inversion is a key economic indicator tied closely to recessions and the significant drop in yields on 10Y treasuries represents a continued bearish outlook on the US economy by investors.