Rising Rates and Debt Levels Spark Fears of a Crash Like 1987

Bond markets are crashing around the world, similar to before the 1987 stock market crash. High debt levels leave less room to respond now.

Interest rates are rising rapidly as investors price in higher rates for longer to curb inflation.

Stock markets remain overstretched and have room to fall further if bonds stabilize through equity repricing.

Overall debt levels are far higher now than in 1987, leaving governments, companies and households vulnerable.

Unlike 1987, major economies are now weaker after years of high spending, money printing, and swelling regulation and debt. A crash could force living within means again.