Here’s Why a Debt Doom Loop Is Brewing

Here’s Why a Debt Doom Loop Is Brewing

From Here's Why by Bloomberg

May 29, 2026 · 8 min

About this episode

The episode discusses the implications of rising long-term bond yields on global borrowing costs and economic activity.

A prolonged period of elevated long-term bond yields is ramping up borrowing costs around the world. That in turn affects the cost of mortgages, credit card debt, car loans and other borrowing, squeezing households and companies and weakening economic activity. Bloomberg's Head of Economics and Government Stephanie Flanders joins Caroline Hepker to discuss what's behind the rise, how it changes the global economy and if some countries are at risk a bond doom loop. See omnystudio.com/listener for privacy information.

People in this episode

Host: Caroline Hepker

Guest: Stephanie Flanders

Topics covered

  • debt
  • economics
  • bond yields
  • global economy
  • borrowing costs

Keywords

  • debt doom loop
  • bond yields
  • borrowing costs
  • economic activity
  • mortgages
  • credit card debt

Mentioned in this episode

Organizations: Bloomberg

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