Despite the strictest lending standards in history, market risk sentiment remains high😉

Net-net, credit lending standards are at the tightest levels seen during the late Dot-com, Lehman, and Covid-slowdowns, and are expected to subtract between 0.5 to 1% of GDP over the next 2 quarters. However, unlike those previous episodes, stocks have barely paid any heed to the tightening in credit conditions, thanks to continued positive expectations in corporate earnings, decent 'hard' economic data, and heavy expectations of Fed rate eases in 2024 to keep risk sentiment highly buoyed. Interesting times indeed.

#credit #lending #Fed #stocks #corporate