No recession ahead, but expect rate hikes, says BAML

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By Sasha Padbidri
05 Dec 2017

Research analysts at Bank of America Merrill Lynch's 2018 market outlook answered fears in US securitization markets about increasing overall loss rates on recent loan vintages across various consumer credit sectors – and a rush by some lenders to readjust loss expectations – by dismissing fears of a recession.

“In the next two years we are still below capacity,” said Michelle Meyer, head of US economics research, "meaning that the economy is not necessarily sniffing out that it’s turning into a recession. There’s still room for growth and expansion, and there’s still the ability to grow a ...

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