In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses:
1. Economic Slack—Our index of the U-6 underemployment rate and excess industrial capacity tells us that there is plenty of slack in the economy, giving comfort that inflation fears are overblown.
2. Big Bank Earnings—Our economic canaries in the coal mine. Q1 earnings’ actions and commentary suggest nearly all is well in commercial and consumer loan risk.
3. Consumer Confidence—The latest report from the University of Michigan reminds us that the pandemic and rising cost of living are weighing on the U.S. consumer.