Governments and companies took on $15tn more borrowing in first nine months of 2020.The pace of debt accumulation will leave the global economy struggling to reduce borrowing in the future without “significant adverse implications for economic activity”. The total level of global indebtedness has increased by $15tn this year, leaving it on track to exceed $277tn in 2020. It expects total debt to reach 365 per cent of global gross domestic product by the end of the year, surging from 320 per cent at the end of 2019. High debt levels will lead to zombie banks and zombie companies that constrain growth.
US junk bond fell to 4.8 percent, marking “a new all-time record low” for the asset class. I need to think where to invest my cash, as there is too much competition for the bonds at the moment.
Fun fact: The UK tax code is the longest in the world, made for the rich.