The corporate savings rate rose in Q3 as per the Z1 survey and looks like it has probably risen more since.
It's a bit weird as capital formation ie capex, was rising into year end.
As per the chart below business loans picked up a little in Jan and are flat in the first week of Feb so far having gone negative for a few weeks in Q4.
Good job Yellen didnt hike rates to a neutral level before leaving the Fed as I think that would probably be enough to trigger a recession.
Instead we have continuing very loose rates trying to underwrite, in my view, a transition between economic cycles without a recession in the middle.
The new cycle will involve lower corporate margins and more defaults. So how do you play credit spreads widening over time?