Comments from Dallas Fed President Kaplan in an essay

  • Higher debt levels to make US more interest-sensitive
  • Disruption to CLO's could curb bank lending in downturn
  • The need to moderate future debt growth could create a headwind
  • Recent fiscal actions have increased US debt-to-GDP

He's touching on an important point that's going to be a huge part of the next recession, whenever it comes. Here is the full text.

Here's a great chart:

US non-financial corporate debt

The key quote:

"An elevated level of corporate debt, along with the high level of U.S. government debt, is likely to mean that the U.S. economy is much more interest rate sensitive than it has been historically."