Ten years after rumblings began of a financial crisis, the picture is mixed as to whether the system is more secure. Risk management has moved to the forefront for asset managers, but equity markets have become more concentrated and consumers are taking on more debt.
Shaky ground: The record heights of U.S. equities have been less correlated with earnings than they were in the years preceding the crisis.
Debt loading: Total consumer debt was about $3.78 trillion at the end of 2016, up $1.3 trillion since 2006, while the number of banks has dropped by about a third. Banks hold about 40% of consumer debt, up from 33% in 2007.
MBS improving: Outstanding issues of mortgage-backed securities are just below their 2007-‘08 levels despite yielding about half of what they offered pre-crisis. Loan defaults are below pre-crisis levels. New loans are expected to drop as rates increase.
Keep it in houses: Home price have recovered since the crisis, and then some, but wages have failed to keep up. Data show the two are continuing at different trajectories.
Bloomberg LP, Securities Industry and Financial Markets Association, U.S. Federal Reserve
Compiled and designed by Charles McGrath and Gregg A. Runburg