Credit Market Update – October 2025

Credit Market Update | October 2025 | Bankers Edge Advisory

U.S. economy maintains solid momentum through Q3 2025 with steady expansion and deepening liquidity.

  • Growth: Q2 GDP +3.8% (consumer spending/business investment driven). Inflation eased to 3.0%; Fed cut rates to 4.1%.
  • Jobs/Consumers: Unemployment near 4.1%. Household balance sheets healthy (delinquencies 2.8%, debt service 11.3%).
  • Credit/Corporates: Business delinquencies very low (1.3%). HY spreads widened modestly to 3.2%, yet remain below historical stress levels. Credit quality improving (50% BB-rated). Banks well-capitalized (Tier-1 14.1%).
  • Private Markets: Global private credit continues expansion; direct lending remains robust. M&A moderated to $188B in October following September’s $232B rebound, with focus on larger strategic deals ($10B+).

Bottom Line

Constructive outlook into year-end: strong fundamentals, ample liquidity, and policy flexibility support disciplined growth and measured risk-taking.

👉 Read our latest U.S. Credit Report for full insights and updates.

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Meet Mitch Vermet,

CFA, CAIA
Managing Director
Our other Managing Director, Mitch Vermet, CFA, CAIA, has a decade of experience in institutional asset management and investment banking. He has served as an integral asset within close-knit investment teams responsible for building portfolios and allocating tactical assets for over $30 billion in institutional capital.
Since earning a BA in Economics from the University of Michigan and an MA in Management from the Ross School of Business at the University of Michigan, Mr. Vermet has demonstrated mastery in helping clients manage and structure their balance sheets with strategic asset liability management solutions. He has built a reputation for helping clients strategically manage risk while capitalizing on opportunities across unique macroeconomic scenarios, lending valuable expertise and foresight to clients.  

Mr. Vermet is a member of the CFA Institute and CAIA Association. He is also a Registered Representative of BA Securities, LLC, and a member of FINRA and SIPC.

Meet Richard Consul,

CFA
Managing Director
Richard Consul, CFA, brings unmatched expertise and experience as one of our Managing Directors. Mr. Consul has over 20 years of domestic and international secondary market expertise as a Senior Portfolio Manager and Fixed Income, Currency, and Commodities Strategist.
Since earning a BBA in Finance and an MSE in Financial Engineering from the University of Michigan, Mr. Consul has served as a dedicated business partner to many corporate, banking, and insurance clients. He has built a reputation for helping clients solve and overcome various complex liquidity, risk management, ALM, and secondary market challenges. 
Mr. Consul has lent his expertise to countless financial publications and platforms, including Asset TV, a renowned video research platform for investment professionals. He is a member of the CFA Institute and has received certifications in Securities Industry Essentials (SIE), Series 82, and Series 63 through FINRA.