Cross River Intelligence Archives

The US economy grew by 2.6% in the 4th quarter, continuing the pattern of strong trend growth in 2017. Global economies continue to enjoy an unusual period of synchronized growth, a constructive pattern last seen in the mid-2000s. US growth was primarily driven by consumer spending of 3.8%. US consumer spending is supported by US consumer credit outstanding which grew at an ann ...

Bank earnings continued to report this week. Overall, earnings are benefitting from gains in non-trading and fee-revenue businesses, including lending and asset management. However, earnings are under pressure due to continued pressure on fixed income and commodities trading revenues, and a one-time impact from the changes in the tax code. Citigroup and MS reported strong earnings this week, while ...

Equity and credit markets continued their march higher and tighter this week, buoyed by JP Morgan’s earnings. Although the bank reported a lower than estimated EPS of $1.07 due to a $2.4 Bn 4th quarter charge related to the new tax law, it indicated that its effective tax rate will fall from 32% to 19%. Revenue from fixed income trading across the street continues to disappoin ...

The US economy added 148k jobs in December and the unemployment rate held steady at 4.1%. The jobs number was below economists’ estimates of 190k, but average hourly earnings rose 2.5%, a strong increase, and a metric that market participants are watching as a precursor to higher inflation. The economy has added 2.06 Mn jobs in 2017, and is fast approaching the Fed’ ...

2017 has been a great year for equity and credit markets. The S&P500 ended the year up 20%, while CDX IG and CDX HY spreads tightened 46bps. ABS markets enjoy record issuance and all-tight time spreads. Do check out our redesigned MPL Loan Performance Monitor, where we track the delinquency rates, cumulative losses, and transition matrices on public marketplace lending data t ...