Sovereign Plumbing Now Runs Through Leveraged Non-Banks
factors
2026-06-30 08:11:00
Related:Bund marketJGB marketSOFR (SOFR)United States - government debt to gdpUnited States Budget DeficitUS 10-Year Treasury (UST10Y)US 2-Year Treasury (UST2Y)US Treasury marketGermanyJapanUnited KingdomUnited StatesFinancialsCapital Markets
The buyer base for sovereign debt has shifted decisively to leveraged non-banks. Their share of advanced-economy government debt rose from 44% in 2021 to 53% in 2025, while domestic central-bank holdings fell from 27% to 17% under QT. Why it matters: Liquidity can look ample for long stretches and then vanish — the probability of a GFC-scale Treasury-stress event is roughly ten times higher when...
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