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 Flows to Debt BofA private clients continue to buy bonds, as bond yields are looking more attractive. Image: BofA Global Investment Strategy
GWIM Debt Holdings as % of AUM BofA private clients’ debt allocation remains low at 20%. Image: BofA Securities
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,…