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.
A doom loop
However, the eurozone crisis also demonstrated the vulnerability associated with domestic banks holding a high level of domestic government debt.
A ‘doom loop’ developed in some economies: concerns about sovereign creditworthiness impacted the banks; and concerns about bank creditworthiness fed back to sovereigns.
Tags: EFG
