Jenny Surane discusses investors scrutinizing the cost of surging brokered deposits and FHLB loans, Ben Emons shares thoughts on Fed policy and the markets, Elizabeth Gore talks about equitable access to credit for small business owners, Joel Weber and Jeremy Keehn share stories from the Businessweek Magazine’s Heist issue, and Sonia Meskin discusses rising yields and inflation uncertainty.
Investors are closely examining the cost of surging brokered deposits and FHLB loans for midsize banks.
The potential upside in inflation and comments from central bank officials are driving the recent move up in yields.
Credit card usage and delinquencies can serve as indicators of consumer health.
Deep dives
Higher yields reflect potential upside in inflation and central bank talk
The recent move up in yields is consistent with the potential upside in inflation and the comments from central bank officials.
Risks for financial assets, particularly equities, due to higher term premium and real rates
Equities may face risks due to higher term premiums and real rates, unless there is healthy rates of real growth.
Consumers expected to soften when excess savings run out, but labor markets and wage growth remain robust
Consumers may soften when excess savings are depleted, especially for lower-skilled workers, but wage growth and tight labor markets may provide support.
Credit cards as an important gauge of consumer health
Credit card usage and delinquencies could provide insight into the health of consumers.
Private credit as an area of potential concern due to lack of public data and systemic risks
Private credit, with limited public data and potential systemic risks, may be an area of concern for the investment landscape.
Bloomberg News Finance Reporter Jenny Surane discusses her Big Take story about investors scrutinizing the cost of surging brokered deposits and FHLB loans as midsize banks bear brunt of higher interest rates. Ben Emons, Head of Fixed Income at New Edge Wealth, shares his thoughts on Fed policy and the markets. Elizabeth Gore, President and CEO of Hello Alice, talks about providing equitable access to credit for small business owners. Bloomberg Businessweek Editor Joel Weber and Businessweek Features Editor Jeremy Keehn share some stories from the Businessweek Magazine’s Heist issue. And we Drive to the Close with Sonia Meskin, Head of US Macro at BNY Mellon Investment Management. Hosts: Carol Massar and Matt Miller. Producer: Paul Brennan.