The inaugural Janus Henderson Sovereign Debt Index is a long-term study into trends in government indebtedness around the world, including the investment opportunities this provides and the risks it presents. Global Bonds Portfolio Manager Bethany Payne provides an overview of the study’s findings and implications.

Key Takeaways

  • Global government debts jumped by over one-sixth (17.4%) in 2020, rising by $9.3 trillion to a record $62.5 trillion.
  • The increase was equivalent to one-seventh (14.8%) of global gross domestic product (GDP).
  • In the U.S., government debt has increased almost twice as fast as the rest of the world since 1995, rising $2.8 trillion in 2020 to a record $19.6 trillion amid the fight against COVID-19.