U.S. Consumer-Based Credit Assets Favored: Angel Oak Capital

The video discusses the strength of the US consumer and its implications for trade negotiations, particularly with China. It highlights the resilience of consumer credit, even in potential labor market weaknesses, and emphasizes the strong position of US residential mortgage credit. The discussion also covers the sustainable trajectory of home prices, aligning with wage inflation, and moving away from past boom-bust cycles.

What is a potential risk associated with the strength of the US consumer in trade negotiations?

• Higher interest rates

• Leverage for trade partners

• Increased consumer spending

• Stronger labor markets

How is US consumer credit expected to perform during risk-off environments?

• It will likely decline

• It will remain stable

• It will perform well

• It will become volatile

What has contributed to the strong position of US residential mortgage credit?

• Decreased housing demand

• Higher interest rates

• Massive deleveraging

• Increased consumer debt

How have home price appreciation rates changed recently?

• They have become unpredictable

• They have increased significantly

• They have remained constant

• They have slowed down

What is the current relationship between home price appreciation and wage inflation?

• Home prices are rising faster than wages

• Home prices are aligned with wage inflation

• Wages are rising faster than home prices

• There is no correlation between the two