SOFR-IORB = -15bp!๐ฏ
The largest negative spread since September 2022.
25% of repo transactions are clearing below 3.50%.
The system is choking on collateral scarcity
The K-Shaped economy is worsening:
Sentiment among consumers earning less than $50,000 is down to ~82 points, the 2nd-lowest since May 2023 and in-line with the 2020 pandemic low.
At the same time, sentiment among those earning $50,000-$100,000 is down to ~90 points, near the lowest since December 2023.
The sentiment index for both groups has been in a downtrend over the last 14 months.
Meanwhile, sentiment among consumers earning over $100,000 has risen since February, to ~110 points, and stands above the 2023-2024 average.
This comes as lower-income households are increasingly concerned about surging gasoline prices that are up +60% year-to-date, to $4.56/gallon, the highest since 2022.
Financial strain on lower-income consumers is accelerating.
BlackRock cut the value of its publicly-traded private credit fund by about 5%, as it struggled under the weight of troubled loans, markdowns and lower returns. https://t.co/yAr3t5eHQG
๐บ๐ธ A neuroscientist ran MRI scans on kids aged 3-5.
Just 2 hours of daily screen time was enough to cause measurable white matter loss in their brains.
White matter is what controls language, learning, and how your brain's neurons connect.
His reaction when he saw the results: "Wowโฆ I was not anticipating seeing anything like that."
60 kids. 2 hours a day. Visible brain damage on a scan.
Put the iPad down.
Source: @newstart_2024, 10 News