Global Sovereign Debt: Are We Heading Towards a Debt Crisis?

Global Sovereign Debt: Are We Heading Towards a Debt Crisis?

During the global financial crisis, we also saw a surge in global debt. But one comforting factor at that time was the cost of borrowing. Borrowing costs were particularly low for these economies, so debt affordability was not such a major concern. Now the situation is reversing. For advanced economies, long-term bond yields have surged to very high levels, with US yields averaging close to 5%, while other advanced economies have followed the sa…