Prudent observations from the banking abyss

The default rate on credit card loans from small banks just hit a record high of 7.5%.

This is well above the 2001 high of 6.0% and 2008 high of 5.6%.

Meanwhile, these same small lenders have exposure to 70% of commercial real estate loans in the US.

~$1.5 trillion of these… pic.twitter.com/5SBoWIxH6o

— The Kobeissi Letter (@KobeissiLetter) September 10, 2023