Apollo’s Chief Economist Says a ‘Default Cycle’ Has Begun Due to Fed Hikes
- Slok eyes rising delinquency rates on credit cards, auto loans
- He says lagged effects of monetary policy not showing in labor
This article is for subscribers only.
Corners of the consumer and corporate market are beginning to feel the pain from the Federal Reserve’s ultra-aggressive rate hikes, even though broader macroeconomic indicators are still showing signs of strength, says Apollo’s Torsten Slok.
“A default cycle has started,” the chief economist told Bloomberg TV Thursday, pointing to rising delinquency rates for auto loans and credit cards, and higher default rates within the high-yield and loan market.