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.
Foreign holders
Foreign holders of debt may periodically lose confidence in either the creditworthiness of the issuer or in the currency of denomination.
Debt held domestically may therefore be in safer hands than that held overseas. In that context, Japan’s government debt, which is predominantly held domestically, poses less of a risk (see chart).
Within the eurozone, Italy has the highest proportion of debt held domestically.
Tags: EFG
