The Federal Reserve reported that the net worth of households and nonprofit increased from $85 trillion in the first quarter to $85.7 trillion in the second quarter of 2015.
The amount of corporate equities held directly and indirectly climbed $61 billion and the value of real estate increased $499 billion.
According to the Federal Reserve, the household debt increased 3.9% and mortgage debt excluding charge-off roses 2.2% at an annual rate while consumer credit climbed 8.1%.
Vanguard’s move into PE may change the landscape forever
Private equity has been growing in popularity in recent years as more and more big-name funds and institutional investors dive in. Now even indexing giant Vanguard is out to take a piece of the PE pie. During a panel at the Morningstar Investment Conference this year, Fran Kinniry of Vanguard, John Rekenthaler of Morningstar and Read More
Federal Reserve says total government debt was $17.5 trillion
The domestic non-financial debt outstanding was $44 trillion by the end of the second quarter. The household debt was $14 trillion, non financial business debt was $12.5 trillion, and the total government debt was $17.5 trillion.
During the quarter the debt of local and state governments increased at annual rate of 1%, down from an annual rate of 4.3% in the previous quarter. The federal government debt at a seasonally adjusted annual rate of 2.4%.
According to the Federal Reserve, the non-financial business debt increase at annual rate of 8.3%, larger than the previous quarter. The central bank noted that corporate bonds represent most of the increase in recent years.
The Federal Reserve explained that the Financial Accounts of the United States (Statistical Release Z.1) is organized in the following sections:
- Matrices summarizing flows and levels across sectors, tables on debt growth, net national wealth, gross domestic product (GDP), national income, saving, and others.
- Flows of financial assets and liabilities, by sector and by financial instrument
- Levels of financial assets and liabilities, by sector and by financial instrument
- Balance sheets, including non-financial assets, and changes in net worth for households and nonprofit organizations, non-financial corporate businesses, and non-financial non-corporate businesses, Supplementary tables providing equity detail of the household and nonprofit organization sector and data on nonprofit organizations
- Integrated Macroeconomic Accounts
Federal Reserve adds pages for EFA initiative on its website
The Federal Reserve added new pages on its website for the Enhanced Financial Accounts (EFA) initiative. According to the Fed, EFA is an ambitious and long-term effort to improve the “Financial Accounts” by providing additional detail and disaggregation, higher-frequency data, additional documentation and analysis of financial data.
Additionally, the Federal Reserve reclassified the credit market instruments (financial assets and liabilities) into new categories: debt securities and loans.
The Fed also expanded that the instrument category “Treasury securities.” The category now include all marketable and non-marketable Treasury securities held by the public and non marketable Treasury securities held by federal government employee defined benefit (DB) pension plans. The federal debt growth was slightly revised for all time periods because of these additions. Additional information will be provided in the upcoming FEDS note.