Market Correction Risk Scorecard

Liquidity Conditions 51.6 · YELLOW

Level 3 · weight 15%

Metrics

MetricValueZStatusSource
10Y Real Yield (TIPS)
10-Year TIPS yield. Real cost of capital.
2.34 % 1.73 RED FRED:DFII10
10Y Treasury Yield
10-Year Treasury constant maturity nominal yield. Higher rates compete with equities.
4.67 % 1.63 RED FRED:DGS10
High-Yield Credit Spread (OAS)
ICE BofA US High Yield OAS. Credit often cracks before equities.
2.63 bps -1.19 GREEN FRED:BAMLH0A0HYM2
Investment-Grade Credit Spread (OAS)
ICE BofA US Corporate OAS. Lower-frequency stress signal.
0.79 bps -0.80 GREEN FRED:BAMLC0A0CM
Yield Curve (10Y-2Y)
10Y minus 2Y spread. Inversion historically precedes recessions.
47.00 bps -0.74 GREEN FRED:DGS10-DGS2
Bank Credit Stress Score
Aggregate GPT score of credit stress signals (reserve builds, tightening standards, rising delinquencies) from JPM/BAC/GS/MS/WFC earnings calls. Higher = more stress.
0.33 score 0.58 YELLOW transcripts + GPT
Fed Communication Hawkishness
Mean GPT hawkishness score of Fed speeches and FOMC press releases over the last 30 days. Higher = more hawkish (tighter financial conditions).
0.08 score -0.48 GREEN news_digest + GPT