So much for “restrictive” interest rates.
Wall Street has already packaged up and sold a record amount of new bonds backed mostly by U.S. household debt in 2024, according to Barclays analysts.
Issuance of asset-backed bonds, which are backed mostly by pools of car loans, credit-card debt and other consumer-related assets, has already hit a record $299 billion high this year.
What’s more, the Barclays research team expects issuance to top $315 billion before the year is out. While the Federal Reserve has lowered its policy rate to a 4.5% to 4.75% range since September, that’s still a lot higher than levels in past decade.