Household and Business Debt: A Fire-Sale Risk Analysis

Fang Cai, Gene Kang, Gazi Kara (), Nathan Swem and Filip Zikes
Additional contact information
Fang Cai: https://www.federalreserve.gov/econres/fang-cai.htm
Nathan Swem: https://www.federalreserve.gov/econres/nathan-swem.htm
Filip Zikes: https://www.federalreserve.gov/econres/filip-zikes.htm

No 2021-02-01-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: As of year-end 2019, nonfinancial business debt (BD) and household debt (HD) as a share of GDP were at similar levels of around 74 percent, and yet Federal Reserve Financial Stability Report suggested that BD posed greater risks to financial stability than HD. Since the onset of the pandemic, the size of aggregate BD has increased considerably as a result of roughly $1.25 trillion of new issuance, while HD has grown by less than $100 billion. This note looks through the lens of fire-sale risks to show why nonfinancial BD is more concerning for financial stability than the HD.

Date: 2021-02-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.federalreserve.gov/econres/notes/feds- ... nalysis-20210201.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-02-01-1

DOI: 10.17016/2380-7172.2625

Access Statistics for this paper

More papers in FEDS Notes from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().