Private Debt Assets Under Management Private debt assets under management have tripled over the past decade to $812 billion. Investors are looking to increase yield in a world of low interest rates. Image: Goldman Sachs Global Investment Research
Private Non-Financial Debt Service Ratios Relative To Income Lower interest rates make debt more sustainable. What matters is the debt service cost.
Private Sector Debt Private sector debt is high in China, extremely high in Sweden, and continues to rise. Source: Gavekal
GWIM Debt Holdings as % of AUM Bank of America’s private clients maintain a low debt allocation of 20%, which remains significantly below the average level. Image: BofA Global Investment Strategy
GWIM Flows to Debt The significant rate at which BofA’s private clients are selling debt may reflect a change in investment strategy. Image: BofA Global Investment Strategy
Households and Corporations Debt to GDP and Total Fed Holdings Since the Great Financial Crisis, the private sector has de-leveraged, while the Fed’s balance sheet has risen sharply. Image: Goldman Sachs Global Investment Research
Why We Should Not Be Afraid By China’s Debt? In China, there is a high level of savings and controls on capital outflows. Currently, most of the Chinese savings are lent or invested in China. So, China’s debt reflects the Chinese savings rate. It would be much more worrying if China’s debt led to external debt,…
GWIM 4-Week ETF Flows as % of AUM BofA’s private clients have been buying municipals, dividend, utilities ETFs, and selling energy, EM debt, low-vol ETFs over the past four weeks. Image: BofA Global Investment Strategy