Too much debt, but not likely to burst?
S&P mentioned that the global debt situation as measured by per GDP has increased significantly as compared to 10 years ago (234% vs 208%), primarily driven by the advanced-economy sovereign borrowing and domestic funded Chinese companies.
Advanced-economy sovereign has deep pocket to absorb its own shit if the debt market goes wrong, while a burst in China Corporate will have more impact to its domestic capital market as it is less connected with the rest of the world, as a result the credit risk will be contained.
Hmm... I only buy in half of it.
Advanced-economy sovereign has deep pocket to absorb its own shit if the debt market goes wrong, while a burst in China Corporate will have more impact to its domestic capital market as it is less connected with the rest of the world, as a result the credit risk will be contained.
Hmm... I only buy in half of it.
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