Business credit bears watching — conditions are tightening at the margin.

Baa Corporate Spread · over 10-Year Treasury

Baa spread: 1.53% — The Baa spread is 1.53 points — corporate credit is priced calm. That’s the 31st percentile of all its readings since 1953.

How we score this: ok below 2.00% · watch 2.00% to 2.50% · elevated 2.50% to 3.50% · alert 3.50% and up full method

Baa spread: down 3 readings in a row.

Lending Standards · net % of banks tightening

Standards: 8.10% — A net 8% of banks are tightening business-loan standards — mild tightening. That’s the 65th percentile of all its readings since 1990.

How we score this: ok below 0.00% · watch 0.00% to 20.00% · elevated 20.00% to 50.00% · alert 50.00% and up full method

Business-Loan Delinquency Rate

Delinquency: 1.34% — Just 1.34% of business loans are delinquent — borrowers are keeping up. That’s the 34th percentile of all its readings since 1987.

How we score this: ok below 1.50% · watch 1.50% to 2.50% · elevated 2.50% to 4.00% · alert 4.00% and up full method

C&I Loan Growth · year-over-year

C&I loans: 8.00% — C&I lending is up 8.0% from a year ago — a steady pace. That’s the 49th percentile of all its readings since 1948.

How we score this: alert below -12.00% · elevated -12.00% to -5.00% · watch -5.00% to -0.50% · ok -0.50% to 10.00% · watch 10.00% to 20.00% · elevated 20.00% to 30.00% · alert 30.00% and up full method

C&I loans: up 8 readings in a row.