Allianz Trade Media Center

In a feature for the Washington Examiner, Allianz Trade Senior Economist Dan North weighed in on the continued impact of inflation on American households. While inflation has moderated from recent peaks, consumers are still paying significantly more for everyday essentials, including groceries, housing, utilities, and transportation. Dan highlighted the important distinction between slowing inflation and falling prices, noting that many households continue to feel the effects of cumulative price increases across key spending categories.

Ahead of the September jobs report, Allianz Trade Senior Economist Dan North spoke with CNBC about what employment trends could reveal about the strength of the U.S. economy. As businesses and policymakers look for signs of economic momentum, Dan highlighted the importance of labor market data in shaping expectations for growth, inflation, and the path of future interest rate decisions.

In a recent CNBC interview, Allianz Trade Senior Economist Dan North explained how surging Treasury yields are putting pressure on the economy by increasing borrowing costs for consumers and businesses alike. While savers may see marginally higher returns, Dan noted that the bigger impact will be felt through more expensive mortgages, auto loans, and credit card debt, which can slow spending and economic growth. He also highlighted the challenges higher rates create for small and mid-sized businesses, which often have more limited access to credit.

U.S. banking organizations can obtain RWA reduction on SBLC exposures by selling pro-rata risk participations to Eligible Participants, third parties, provided the participation agreement meets the criteria of an “eligible guarantee” under the regulatory capital framework. Under U.S. Basel III rules (12 C.F.R. Part 217 Regulation Q), credit risk mitigants such as guarantees and participations allow a bank to substitute the risk weight of the Eligible Participant for that of the obligor, or to apply “double default”1 treatment in the advanced approaches, thereby lowering RWA2). 

Allianz Trade publishes its third Country Risk Atlas, a flagship publication that assesses the economic outlook, risks, and opportunities across 83 countries, representing approximately 94% of global GDP. It is based on a proprietary risk ratings model that is updated every quarter with the latest economic developments and Allianz Trade’s proprietary data.