...The US Fitch Fundamentals Index (FFI), a broad measure of credit conditions, remained negative in 4Q15, with the majority of its components being negative for the first time since the global financial crisis. The aggregate index of 10 credit indicators across multiple asset classes (at -2) remains at its lowest level since 4Q09. The negative reading reflects the impact of more sluggish global growth, risks of a China slowdown, the widening effects of sharply lower commodity prices on many high-yield credits and a plateauing of certain credit indicators. The aggregate FFI had remained flat or positive from 2010 to 2Q15, reflecting a relatively benign credit environment, influenced by years of low interest rates and modest economic growth. The results for the second half of 2015, although still at the low end of neutral, suggest that a negative turn in credit conditions may begin to weigh on US growth into 2016....
