Global Debt Record Risks Bond Crash

Published / Last Updated on 13/03/2019

Overgearing in 'global debt' namely Government Bonds (Gilts in UK) and Corporate Bonds (Company and Bank) led to Black Monday Stock Market Crash 1987 and the Credit Crunch Crisis 2008.

By gearing (over borrowing) and using derivatives (futures/options) - bond losses were huge driving investors to sell equities to cover those losses resulting in a stock market crash too.

Global Debt as a proportion of Global GDP (Turnover) was 208% in 2008 and is now 231%!

Western debt (US, UK, Europe) is mainly government debt (worse now than 2008) but debt linked to mortgages/property is lower.

Far East, mainly China, is predominantly mortgage/loan debt and corporate debt.  China's economy is slowing, US is slowing, Europe is slowing ....

Is this the perfect storm for yet another global debt, bond, fixed interest, index linked bond/gilt and stock market crash?



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