Credit Card Tightening
+0.0% ●
Neutral
The Senior Loan Officer Opinion Survey (SLOOS) is a quarterly survey conducted by the Federal Reserve to gauge changes in bank lending practices and loan demand from businesses and households. It provides crucial insights into credit availability, loan terms, and market demand, helping policymakers and market participants understand the prevailing financial conditions.
Lending Standards & Demand
Lending Standards (Net % Tightening)
| Category |
Current |
QoQ Chg |
YoY Chg |
| Credit Card Loans |
+0.0% |
-4.2 |
-9.4 |
| C&I Large/Mid Firms |
+5.3% |
-1.2 |
-0.9 |
| C&I Small Firms |
+8.9% |
+0.6 |
-2.2 |
| Subprime Mortgage |
+8.3% |
+2.0 |
-0.8 |
| Auto Loans |
-6.1% |
-0.3 |
-2.3 |
| Other Consumer |
+2.0% |
+2.0 |
-1.6 |
Loan Demand (Net % Stronger)
| Category |
Current |
QoQ Chg |
Prev |
| C&I Loan Demand |
+1.8% |
-4.8 |
+6.6% |
| Mortgage Demand |
-5.7% |
-4.0 |
-1.7% |
In Q1 2026, lending standards showed a mixed but generally easing trend. Credit card loans saw a 0.0% net tightening, a significant -4.2 percentage point (ppt) easing quarter-over-quarter (QoQ) and -9.4 ppt year-over-year (YoY). While C&I loans to large/mid firms tightened by +5.3%, this was a -1.2 ppt QoQ easing. C&I loans to small firms, however, saw increased tightening at +8.9%, up +0.6 ppt QoQ. Subprime mortgage loans also tightened by +8.3%, a +2.0 ppt QoQ increase, while auto loans eased by -6.1%.
Credit Regime
The current lending environment is characterized as a 'Neutral' regime, with a clear 'easing' trend. This marks a streak of one quarter of net easing, suggesting a shift from previous tightening cycles.
Credit Card Lending Standards (Quarterly)
Historical Parallels
| Quarter | Level | 2Q Later | 4Q Later |
|---|
| 2022 Q3 |
+0.0% |
+28.3% |
+36.4% |
| 2018 Q4 |
-2.2% |
+15.2% |
+10.4% |
| 2018 Q1 |
+1.9% |
+12.0% |
+6.4% |
| 2016 Q4 |
+0.0% |
-7.8% |
+9.1% |
| 2016 Q1 |
-1.9% |
-5.6% |
+8.3% |
Historically, similar tightening periods have occurred 16 times. On average, two quarters later, the tightening level was 2.2%, and four quarters later, it increased to 9.8%. This suggests that while current conditions show easing, historical patterns indicate potential for re-tightening in the medium term.
Market Snapshot
Note: The SLOOS is a quarterly, mid-tier indicator. Market moves shown below reflect broad conditions and are not necessarily driven by this release.
Market Snapshot
Top Movers
| Stock | Gap | 1M |
|---|
| TRINZ Trinity Capital Inc. 7.875% Notes due 2029 |
+247.87% |
-71.2% |
| OXLCI Oxford Lane Capital Corp. |
+220.75% |
-68.8% |
| NMFCZ New Mountain Finance Corporation 8.250% Notes due 2028 |
+219.39% |
-68.7% |
| ADAMI Adamas Trust, Inc. |
+194.87% |
-66.1% |
| MFAN MFA Financial, Inc. 8.875% Senior Notes |
+191.87% |
-65.6% |
Bottom Movers
| Stock | Gap | 1M |
|---|
| OLMA Olema Pharmaceuticals, Inc. |
-37.17% |
-18.2% |
| MHLA Maiden Holdings, Ltd. 6.625 NT 2046 |
-14.94% |
+10.5% |
| ORIC ORIC Pharmaceuticals, Inc. |
-13.84% |
+29.2% |
| SLMBP SLM Corporation |
-10.00% |
+0.0% |
| AMPX Amprius Technologies, Inc. |
-9.80% |
+31.7% |
Amidst these credit condition shifts, the S&P 500 stands at $6740, having experienced a -2.1% decline over the last month. This indicates a somewhat cautious market sentiment despite the observed easing in lending standards.
Sector Performance
Sector Performance
| ETF |
Price |
Open Gap |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| XLF Financials |
$50.57 |
-0.26% |
-6.3% |
-5.8% |
+2.1% |
-7.7% |
-4.2% |
| XLK Technology |
$137.29 |
+0.39% |
-0.6% |
+4.8% |
+24.7% |
-4.6% |
+1.5% |
| XLY Consumer Discretionary |
$114.44 |
-1.30% |
-4.7% |
-2.3% |
+9.2% |
-4.2% |
-2.6% |
| XLC Communication Services |
$117.46 |
-0.20% |
+0.6% |
+3.7% |
+17.2% |
-0.2% |
+2.6% |
Bank & Financial Stocks
Bank & Financial Stocks
| Stock |
Price |
Open Gap |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| USB U.S. Bancorp |
$52.37 |
+0.44% |
-11.9% |
+7.6% |
+21.2% |
-1.9% |
-9.8% |
| BAC Bank of America |
$48.64 |
-0.18% |
-12.2% |
-3.4% |
+17.1% |
-11.6% |
-10.1% |
| GS Goldman Sachs |
$821.08 |
-0.62% |
-10.1% |
+9.6% |
+39.9% |
-6.6% |
-8.0% |
| WFC Wells Fargo |
$80.42 |
-0.78% |
-13.2% |
-1.2% |
+10.2% |
-13.7% |
-11.2% |
| JPM JPMorgan Chase |
$289.40 |
-1.35% |
-8.8% |
-4.3% |
+16.9% |
-9.8% |
-6.7% |
| SCHW Charles Schwab |
$95.23 |
-1.42% |
-8.3% |
-2.5% |
+24.8% |
-4.7% |
-6.3% |
| BX Blackstone |
$110.40 |
-1.95% |
-17.0% |
-34.4% |
-25.8% |
-28.4% |
-14.9% |
| C Citigroup |
$106.53 |
-1.95% |
-9.3% |
+10.4% |
+49.0% |
-8.7% |
-7.2% |
| AXP American Express |
$301.00 |
-2.15% |
-14.9% |
-8.7% |
+6.8% |
-18.5% |
-12.8% |
| COF Capital One |
$187.71 |
-2.45% |
-16.7% |
-17.1% |
+1.5% |
-22.5% |
-14.7% |
The general easing in lending standards could be a positive signal for bank stocks, as it may lead to increased loan origination and improved credit growth. Credit-sensitive sectors, such as housing and consumer discretionary, might also benefit from easier access to financing, potentially boosting their performance.
Positioning
Given the current neutral regime and easing trend, investors might consider a balanced approach. While the easing could support growth-oriented sectors, the historical parallels suggest vigilance for potential future tightening. Diversification across sectors, with a slight tilt towards financials and consumer-facing industries, could be prudent, while closely monitoring upcoming SLOOS reports for any shifts in the easing trend.