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BRIEF-Fitch Says Financial Surpluses Buffer Households Against Rising Rates

BY Reuters | CORPORATE | 06/30/22 01:52 PM EDT

June 30 (Reuters) - FITCH:

* FITCH SAYS FINANCIAL SURPLUSES BUFFER HOUSEHOLDS AGAINST RISING RATES

* FITCH RATINGS SAYS FINANCIAL SURPLUSES BUFFER HOUSEHOLDS AGAINST RISING RATES

* FITCH SAYS THOUGH AGGREGATE HOUSEHOLD SAVINGS RATIOS EASED FROM PANDEMIC PEAKS, SAVINGS REMAIN LARGER THAN RESIDENTIAL INVESTMENT, IMPLYING ONGOING FINANCIAL SURPLUS

* FITCH SAYS AGGREGATE HOUSEHOLD DEBT-TO-INCOME RATIOS IMPROVED AND STRONG LABOUR MARKET DYNAMICS TO CONTINUE TO SUPPORT HOUSEHOLD INCOME GROWTH IN NEAR TERM

* FITCH SAYS HOUSEHOLDS IN EUROZONE, UK, US APPEAR BETTER-PREPARED TO COPE WITH HIGH INTEREST RATES VERSUS LAST TIGHT GLOBAL MONETARY POLICY IN 2006

* FITCH SAYS STRONG CONSUMPTION IN U.S. HAS BEEN BEHIND U.S. HOUSEHOLD SAVINGS UNWINDING FASTER THAN EUROZONE AND UK COUNTERPARTS Source text for Eikon:

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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