Macro · 1 August 2025
Unstoppable government debt
Government borrowing is reshaping rate expectations and increasing the importance of active risk management.
Debt at a turning point
Large fiscal deficits and higher refinancing costs are putting public balance sheets under greater scrutiny. Markets increasingly distinguish between credible long-term plans and short-term promises.
The rate consequence
Persistent issuance may keep term premiums elevated even when inflation moderates. That creates a more demanding environment for borrowers and long-duration assets.
What investors can control
Portfolio resilience starts with liquidity, diversification and realistic return assumptions. Active maturity management can reduce exposure to abrupt repricing.
This material is for information only and does not constitute personal investment advice.