Bondmageddon looms

Can the system take it?

DB's Jim Reid with a serious question, although the calculations are a bit simplified. Things that make you go hmmm: By H1 2023, global debt reached $307tn. Not all is tradable, with the Bloomberg Global Agg peaking at $70tn two years prior. Since then, it's down 23%, indicating a $16tn global market value loss. Projecting this drop across all global debt hints at a $70tn loss. For context, global equities are worth $107tn, and the 2023 global economy is projected at $105tn. These estimates have caveats, but the scale of losses in the debt markets is historically unprecedented both in dollar terms and relative to GDP, raising questions about the system's resilience.