Analysis of Household Financial Conditions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy BAC?
Source: Yahoo Finance
- Rising Delinquency Rates: The New York Fed's report indicates that early delinquency in mortgage and student loans increased in Q4 2023, reflecting ongoing effects from the resumption of payment reporting post-pandemic, although overall household financial health is still considered good.
- Total Delinquent Debt Rebounds: As of Q4 2023, the total amount of delinquent debt reached 4.8%, the highest since 2017, yet this level remains significantly lower than the nearly 10% seen in 2009 and 2010, illustrating a normalization of household finances.
- Sustained Consumer Spending: Despite deteriorating household financial metrics, personal consumption expenditures continue to hit record levels, indicating that American consumers maintain strong spending capabilities, which reflects relative financial health.
- Stable Debt Service Payment Ratio: Although the ratio of household debt service payments to disposable income has been deteriorating over the years, it remains strong in absolute terms, demonstrating households' continued ability to manage debt relative to their income.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 53.360
Low
55.00
Averages
61.64
High
71.00
Current: 53.360
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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