Catch up with Kyle: 2 August 2017

Goldilocks and the four bulls

Developed markets (DMs): Deleveraging has come to an end (bull one)

The annualised pace of deleveraging by the DM private sector over the last 12 months has finally turned positive (as shown in Chart 1). There has been a massive amount of deleveraging since the financial crisis of 2008. This was partly supply-led, as regulations forced banks to tighten lending requirements, but also partly demand-led, as individuals and corporates repaired their balance sheets.