Capital Markets: Observations & Insights

Degrees of Debt

Default Risk Subdued

• After the Global Financial Crisis, delinquency rates across the U.S. declined significantly

‒ Real estate and commercial loan delinquencies have continued to decline, while consumer delinquency rates appear to have bottomed and are modestly rising

U.S. Delinquency Rates

Consumer

Commercial

Real Estate

12%

10%

8%

Delinquency rates do not indicate a significant rise in defaults

6%

4%

2%

0%

Source: Federal Reserve. Data is for all U.S. commercial banks. Real estate loans represent both consumer and commercial loans.

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