New White Paper: The Debt Albatross

A Review of Debt-Related Financial Crises

EV9 9361 PaulCantorBloomberg1200By Paul Cantor, CFA, AIF®, CFP®
Chief Operating Officer, Principal

The purpose of this new white paper is to present answers to the questions:

  • Does debt matter?
  • Will high debt levels cause a huge financial crisis?
  • Can we identify how the crisis may develop?
  • What policy responses should we expect to see?
  • Will this information help us better navigate portfolios through the economic fallout?

These questions are critically important to numerous stakeholders for a variety of reasons. Academics are concerned that current policies are inconsistent with sustained economic growth. Regulators and international financial institutions are concerned that current and future increasing debt levels are harbingers of future crises. Portfolio managers are concerned about preserving client assets in times of crisis while earning acceptable returns during periods of economic growth. Individuals care because their lifetime savings might be at risk. Click here to read "The Debt Albatross."