Rising Rates, Geopolitical Tensions, And Debt Maturities Create Risky Mix

Many investors are warning of the risk of a debt crisis, but governments are ignoring all the signals. In an inflationary crisis, the government should reduce expenditures to help curb price increases while also anticipating a significant increase in borrowing costs. However, in this crisis, the United States administration is ignoring all the warning signs and continuing to borrow at a record pace.

Debt crises always happen when even the most conservative investors refuse to add to a sovereign bond portfolio that is loss-making to begin with.…