Why Are Consumer Defaults on the Rise?

The transcript discusses the impact of a significant vote on capital markets, highlighting the initial drop in high yield issuance and subsequent recovery of funds. It examines the implications of this shock late in the credit cycle, with central banks near zero bound, and the increased risk of recession. The discussion also covers Brexit's potential effects on US earnings, the dollar, and commodities, as well as the disruption in credit market conditions.

What was the immediate effect on high yield issuance following the vote?

• It doubled.

• It fell to zero.

• It remained stable.

• It increased significantly.

How did the market react in terms of fund flows after the initial shock?

• Funds continued to flow out.

• Funds started to return.

• Funds remained stagnant.

• Funds doubled.

What is a key concern when a market shock occurs late in the credit cycle?

• Heightened caution in risk-taking

• Increased risk-taking

• Stable market conditions

• Decreased market discipline

Which factor is NOT mentioned as driving the recession risk indicator?

• Tightening credit conditions

• Weakness in earnings

• Rise in leverage

• Increase in consumer spending

What are the main concerns regarding Brexit's impact on the market?

• Impact on the euro and gold prices

• Impact on the dollar and oil prices

• Impact on the yen and silver prices

• Impact on the pound and copper prices