The world’s massive debt-to-GDP ratio is, in many ways, unimaginable. 322%! Countries with limited borrowing capabilities could face extraordinary hardships in meeting financial needs.

And the refinancing risk? A total of more than $19 trillion of syndicated loans and bonds mature in 2020. It is highly unlikely that all these debts can be refinanced or repaid.

Meanwhile, the adverse impact of massive debt piles can be seen in the slowdown of world trade. (See the dashed red lines in the second chart.) More recently, the year-over-year growth even turned negative.


Turning Japanese? I Really Think So
Debt Cycles Matter