Corporate spreads are at all-time lows and household finances seem to be in good shape, but there is one area of concern - student loans. There was an extended moratorium on student loan payments during the Biden Administration due to the COVID pandemic, but that is in the past. Borrowers now have to pay up, and the bailouts are not there. The result has been an increase in delinquencies. This is especially the case for older borrowers who are nearing retirement. We are not at a crisis, but this is an area of concern that impacts spending and the ability of these consumers to take on any other debt.
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