How Much Is Too Much? $31 Trillion Reasons to Understand the Debt Problem

21 March 2023
55 min listen
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      Richard A. Brink, CFA| Market Strategist—Client Group
      Eric Winograd| Director—Developed Market Economic Research
      Adriaan du Toit| Director—Emerging Market Economic Research; Senior Economist—Africa
      Matthew Scott| Head—Core Fixed Income and Multi-Asset Trading

      Summary

      Past battles over the US debt ceiling have ultimately been settled—sometimes at the 11th hour. But the current political climate and pandemic-related debt surge leave many investors with not-so-fond memories of the 2011 ratings downgrade—and wondering about the implications of outright default. 

      In the latest installment of the AB Disruptor Series, Unpacking the Debt Problem, Rick Brink, AB’s Chief Market Strategist, and an expert panel will start with a deep dive into the US debt-ceiling discussions and then look more broadly at the debt question both here and around the world. 

      The information contained herein reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this production, March 21, 2023. AllianceBernstein L.P. makes no representation or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This podcast segment is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AB or its affiliates. References to specific securities are presented solely in the context of industry analysis and are not to be considered recommendations by AB. AB and its affiliates may have positions in, and may affect transactions in, the markets, industry sectors, and companies described herein.


      About the Authors

      Richard A. Brink is a Senior Vice President and Market Strategist in the Client Group. Previously, he served as a managing director in the Alternatives and Multi-Asset Group. Prior to that role, Brink was a senior portfolio manager in Fixed Income, and before that an investment director for fixed-income investments within the Global Retail Investments Group. Before joining AB in 2004, he was senior product manager at the Dreyfus Corporation, covering both retail and institutional fixed-income offerings. Brink was previously a senior trainer, dealing primarily with the design and delivery of product training to financial advisors and mutual fund sales representatives. He holds a BS in applied mathematics and economics from Stony Brook University, and is a CFA charterholder. Location: New York

      Eric Winograd is a Senior Vice President and Director of Developed Market Economic Research. He joined the firm in 2017. From 2010 to 2016, Winograd was the senior economist at MKP Capital Management, a US-based diversified alternatives manager. From 2008 to 2010, he was the senior macro strategist at HSBC North America. Earlier in his career, Winograd worked at the Federal Reserve Bank of New York and the World Bank. He holds a BA (cum laude) in Asian studies from Dartmouth College and an MA in international studies from the Paul H. Nitze School of Advanced International Studies. Location: New York

      Adriaan du Toit is a Senior Vice President and Senior Economist for Africa. He also leads AB's team of emerging-market economists. He joined AB in 2017 as a Sub-Saharan Africa economist. Prior to joining the firm, Du Toit was a Sub-Saharan Africa currency and rates strategist and director at Citigroup in Johannesburg, where he worked from 2013 to 2017. Between 2007 and 2013, he held three roles at Standard Bank in Johannesburg (rates analyst, head of Macro Research and fixed-income strategist). Du Toit started his career in 2004 as an economist at the South African Reserve Bank. He holds a BCom (Hons) in economics and an MCom in econometrics (cum laude), both from the University of Pretoria in South Africa, and an MSc in financial economics from the University of Oxford. Location: London

      Matthew Scott is a Senior Vice President and Head of Core Fixed Income and Multi-Asset Trading. In addition to managing these teams, he has been a trader since 2007 and currently focuses on trading interest-rate and inflation derivatives, government bonds (including US Treasury Inflation-Protected Securities) and securitizations. Scott previously worked as a portfolio assistant for high-grade bond portfolios and held numerous roles in derivative investment shared services. He holds a BS in finance and an MBA in finance, both from Seton Hall University. Location: New York