Credit Costs Have Reached A Cyclical Low As Leverage Declines

Banks seem to have easily digested energy-related losses and are now well positioned to realize related recoveries with otherwise “low loss levels in an extending business cycle” according to a research note from Credit Suisse on the state the global credit market published at the end of last week noting how Credit Costs have decreased. Credit Costs Have Reached A Cyclical Low As the Federal Reserve begins its tightening cycle plenty of commentators are worried that higher interest rates will be bad news for the US economy as debt built up over the past decade will become harder to maintain….