Will the bond vigilantes return?

As global government debt nears 100% of global GDP, the incoming Trump administration may further increase the substantial US fiscal deficit. In light of this, Paul Diggle and Luke Bartholomew discuss the potential return of the notorious bond vigilantes, who could drive up government borrowing costs due to concerns about debt sustainability.

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This podcast is provided for general information only and assumes a certain level of knowledge of financial markets. It is provided for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any of the investments or products mentioned herein and does not constitute investment research.

The views in this podcast are those of the contributors at the time of publication and do not necessarily reflect those of abrdn.

Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).

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