Highlight of the Week
The Recession Signal That Really Counts Just Flashed Bright Red
- The yield of a 3-month Treasury surpassed the yield of a 10-Year Treasury
- An inversion such as this could suggest that a recession is on the way or already here
- The last time the yields were inverted was in 2020 right before the pandemic caused a recession
Rate Curves
Rapid Report:
Surging Rents Push More Americans to Live with Roommates or Parents
- As rents have continued to rise, many people are opting to live with roommates or parents which has led to the lowest level of demand for apartments in 13 years.
- Rents have risen 25% over the past 2 years while inflation has raised the costs of other essential goods. As a result, some renters are pulling out of the market
Allstate Loss Highlights Struggles Among Insurers
- Allstate Corp. will take an $875 million charge to bolster its claims reserves. As a result, Allstate will report a Q3 YoY loss.
- Hurricane Ian has contributed somewhat to the losses, but more so inflation has pushed up the costs of medical treatment.
- Additionally, rising accident rates have increased costs for Allstate.
