The STLFSI measures the degree of financial stress in the markets and is constructed from 18 weekly data series: seven interest rate series, six yield spreads and five other indicators. Each of these variables captures some aspect of financial stress. Accordingly, as the level of financial stress in the economy changes, the data series are likely to move together.

The average value of the index, which begins in late 1993, is designed to be zero. Thus, zero is viewed as representing normal financial market conditions. Values below zero suggest below-average financial market stress, while values above zero suggest above-average financial market stress.

Financial Stress 1994-Present

Image placeholder title

RECOMMENDED ARTICLES

Financial stress has been negative since June 18, 2010. I expect 2018 will not be so complacent.

MIke "Mish" Shedlock

Crypto Mining Stresses Electrical Grid in One Washington State County

Mining digital currencies requires so much electrical power that it has stressed the capacity of one Washington county

Eight Reasons a Financial Crisis is Coming

It's been about 10 years since the last financial crisis. FocusEconomics wants to know if another one is due.

Household Debt Up 18 Consecutive Quarters to a New Record, Card Stress Rising

Household debt is up 18 consecutive quarters to a new record high. Credit card stress is on the rise in most age groups.

Financial Fragmentation of the Eurozone in Pictures

Eurozone fragmentation is massive. Target2 imbalances are just part of the picture.

Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealt

A new study shows 57% of Australia mortgage holders could not handle a $100 increase in their loan repayment.

Mortgage Defaults Rise First Time Since Financial Crisis but Refi Surge Likely

Defaults are up for the first time since the great financial crisis. But as rates fall, a refi surge will help millions.

Brexit Tracker Battle: Financial Times vs. Economist vs. Bloomberg

In addition to competing GDP “Nowcasts” between the Atlanta Fed and the New York Fed, at least three financial sites offer a “Brexit Tracker” using that name.

Rethinking the Fed: More Tightening than Priced In? Next Financial Crisis Coming Up?

Time and time again, the Fed sows seeds of the next financial crisis in actions it takes to mitigate the previous financial crisis that it caused.

Saxo Bank Quarterly Outlook: End of a Cycle Like No Other

Saxo Bank provides an ominous economic outlook in its second quarter report.