Credit stress is expected to rise next year as more borrowers grapple with the effects of inflation, higher interest costs and a weakening consumer. But private credit might see the worst of it https://t.co/KNUk3uZDkQ ...

Core Viewpoint - Jamie Dimon warns of potential trouble in the credit market, suggesting that the recent failures in the sector may indicate broader issues, as highlighted by Rosenberg Research [1][6]. Group 1: Signs of Credit Distress - Newly delinquent loans are on the rise, with the balance of loans that are at least 30 days late increasing to 5.3% in Q3, the highest rate since 2014 [3]. - The percentage of loans transitioning into serious delinquency (90 days or more late) rose to 3% in the last quarter, marking the highest rate in over a decade [4]. - Consumers are under financial stress, diverting funds from discretionary spending to service debts due to elevated borrowing costs [4]. Group 2: Corporate Borrower Distress - Corporate borrowers are also experiencing increased distress, with the percentage of corporate loans considered distressed spiking in 2022 and remaining elevated since then [7].

Wall Street chiefs have hinted at credit stress and a cooling economy https://t.co/nam17tdXKR ...

Credit Market Stress - Lower-rated companies are facing increased interest payments on new debt, signaling rising credit stress [1] - This is happening as interest rates remain high and earnings are declining [1] Analysis by JPMorgan Asset Management - JPMorgan Asset Management's Oksana Aronov points to this trend as an indicator of financial strain [1]