Here are a handful of striking observations on the real problem with the global debt bubble, courtsy of CLSA’s Damien Kestel, and why any spike in interest rates could lead to a global fiasco.
Extraordinary low interest rates around the world have delivered a monumental blow to many investors. Falling interest rates have translated into rising liabilities for (defined benefit) pension plans and, secondly, millions of retirees, who depend on income from savings to take them through retirement, are struggling to make a decent living.