For more than ten years after the global financial crisis, money was cheap. We lived in an era of “secular stagnation,” where low growth and high savings meant interest rates stayed near rock bottom. Central banks even bought up massive amounts of debt to keep things moving. However, those days are officially behind us.
- Low-cost capital: Post-crisis, global savings were high while investment remained weak, pushing interest rates down.
- Central bank intervention: Authorities actively bought debt to support these low rates.
- A major shift: Today, the landscape is entirely different.
- New reality: Long-term debt interest rates in developed nations have hit their highest levels since the mid-2000s.
The financial world has clearly moved on from the low-interest environment we once knew.