Who actually holds the global debt?
By International Adviser, 8 Jun 18
Despite much talk of debt reduction and deleveraging since the financial crisis, global debt levels are higher than ever before. Several risks arise for investors and for financial and economic stability, according to Daniel Murray, head of global research at EFG Asset Management.
After the global financial crisis, an important theme was debt reduction or deleveraging (reducing debt relative to assets or income).
In the US and UK, household and financial sector deleveraging did occur but progress in other countries and sectors was much less marked.
In aggregate, global debt (see chart) now amounts to almost $200trn (£149trn, €170trn).
Much of that increase has been in the emerging market corporate sector. How much of a concern is this high level of debt?
Five issues are particularly important: click through the slides below to read more.
Tags: EFG
