Even before the Covid-19 crisis, public and private debt were near historic highs and steadily increasing. The combined debts of governments, corporations, and households stood at $289 trillion at the end of the first quarter of 2021, or about 360% of the world’s GDP. The larger debt burdens are reminiscent of the run-up to the Global Financial Crisis (GFC) and with familiar risks creeping back and new ones emerging, this raises the question: “Are we on the verge of another financial crisis?” This presentation explores the consequences of sky-high borrowing levels for capital markets and describes what has (and hasn’t changed) since GFC.
Sky-High Borrowing Levels: Is the Sky the Limit?
Updated: Sep 14, 2024
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