Illustration: Aïda Amer/Axios

Mounting U.S. debt, and rising credit-card delinquencies, are creating what one big bond investor describes as a "cocktail of economic risk."

Why it matters: These realities run contrary to the overall narrative of a strong U.S. economy.

What's happening: The Federal Reserve warned that corporate America is taking on too much debt, Axios' Dan Primack writes.

  • Rising consumer debt is also a worry. U.S. banks are tightening their lending standards and raising rates on commercial loans and credit cards, according to Axios' Dion Rabouin and Courtenay Brown.
  • Credit card delinquency rates in Q1 hit the highest level since 2012, driven partly by a spike in overdue payments by people ages 18–29, according to the New York Federal Reserve.
  • U.S. national debt is $1 trillion higher than the previous record.

What they’re saying: "Junk bonds are flying out the door once again. Deeply indebted companies are borrowing even more to pay equity holders." (Bloomberg)

  • On the consumer front: "Borrowers think life is good and income is rising, and ... they overextend themselves," said James Chessen, chief economist at the American Bankers Association. "You tend to see more of that behavior" toward the end of an economic cycle.

What to watch: As companies struggle under their enormous debt loads, expect them to start looking to the high-flying stock market for rescue.

  • First up: Chewy, being spun out by its highly-leveraged parent, PetSmart, for much-needed cash.

Go deeper ... Warning: Signs of credit crisis grow

Go deeper

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15 states broke single-day coronavirus records this week

Data: Compiled from state health departments by Axios; Map: Danielle Alberti/Axios

At least 15 states broke their single-day novel coronavirus infection records this week, according to state health department data reviewed by Axios.

The big picture: The number of coronavirus cases increased in the vast majority of states over the last week, and decreased in only two states plus the District of Columbia, Axios' Andrew Withershoop and Caitlin Owens report.

Updated 10 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 p.m. ET: 11,143,945 — Total deaths: 527,681 — Total recoveries — 6,004,593Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 2,818,588 — Total deaths: 129,584 — Total recoveries: 883,561 — Total tested: 34,213,497Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona's hot spot reach near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineKimberly Guilfoyle tests positive.
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.
11 hours ago - Health

In photos: America celebrates July 4 during global pandemic

Photo: Francine Orr/Los Angeles Times/Getty Images

The U.S. has already celebrated Easter, graduations and so much more during the coronavirus pandemic, and now it can add July 4 to the list.

The state of play: Axios' Stef Kight writes public parades and fireworks displays around much of the country are being canceled to prevent mass gatherings where the virus could spread. Hot-dog contests and concerts will play to empty stands and virtual audiences — all while American pride treads an all-time low.