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Credit Fragility

Indicator Study | Emerging | As of 2026-03-06 | Freshness 2d

Credit Fragility is 'emerging' with a composite score of 43.1. The hottest components are Consumer credit strain 60.3, Financing tightness 36.7.

43.15 Score
2 day(s) Freshness
2026-03-06 As Of

Component Scores

Component Score
Market stress 35.09
Financing tightness 36.74
Consumer credit strain 60.29

Current Drivers

Driver Component Score Raw Transformed
Delinquency rate on credit-card loans Consumer credit strain 60.29 2.94 2.94
Adjusted National Financial Conditions Index Financing tightness 36.74 -0.53 -0.53
High-yield option-adjusted spread Market stress 36.02 3.00 3.00
BBB option-adjusted spread Market stress 34.15 1.04 1.04

Metrics

Metric Value
Score 43.15
Freshness Days 2
Panel As Of Date 2026-03-06
Source As Of Date 2026-03-05
Macro Stress Probability 0.00

Charts

Component contribution bars

Component contribution bars

Higher scores indicate more replacement pressure or fragility for this study.

Normalized history panel

Normalized history panel

All lines are scored on the same 0-100 scale using trailing z-scores on a weekly Friday panel.

Macro-stress probability overlay

Macro-stress probability overlay

This logistic overlay uses claims, spreads, and ANFCI to estimate generic macro stress, not AI causality.

Notes

  • Higher scores mean credit markets are less able to absorb an income shock.
  • The macro-stress probability overlay is trained on broad historical stress, not on AI-specific episodes.
  • Mechanism note: Once labor and demand soften, spreads, funding conditions, and consumer delinquencies are the channels through which a localized replacement shock becomes a broader macro break.
  • Freshness: the stalest source series in this study is 2 day(s) old.

Commentary

Credit fragility remains emerging with a composite score of 43.1, driven primarily by elevated consumer credit strain (60.3) and tightening financing conditions (36.7).

  • Composite score rose from ~28.9 (early 2021) to 43.1, signaling increasing fragility.
  • Consumer credit strain component at 60.3 reflects rising delinquency rates on credit‑card loans.
  • Financing tightness at 36.7 and market‑stress spreads (e.g., High‑yield OAS 3.0) indicate constrained credit conditions.

Caveat: The indicator uses a limited set of high‑frequency variables and can be volatile; macro‑stress probability (~0.1%) is low but may not capture broader systemic risks.