It's not exactly the deleveraging that many hoped for; total debt in mature economies is still near 400% of GDP, a decade after the crisis. But by the same token, after a decade of stimulus bills and bailouts and automatic stabilizers and soaring student loans and ultra-cheap funding costs, it's an achievement in itself that debt hasn't gone up.

Expand chart
Data: Institute of International Finance; Chart: Chris Canipe/Axios

The details: The debt is safer now, too. Governments account for more of it, while the financial-services sector has deleveraged more than anybody else. When governments run into debt trouble, they implement financial repression, which is less painful than crisis-triggering defaults.

All of this comes as U.S. homes have deleveraged their debt as well:

Expand chart
Data: FactSet; Chart: Andrew Witherspoon/Axios

At the height of the crisis, there was a terrifying $600 billion in leveraged loans outstanding. This junk-rated debt looked highly likely to default, because it couldn't be refinanced: Just $77 billion of such loans were issued in 2009.

  • Here, the deleveraging never really happened, and now we're seeing record issuance (an annualized $666 billion, year-to-date) and record debt levels, too ($1.1 trillion, at last count).
Expand chart
Data: LCD, S&P Global Market Intelligence; Chart: Andrew Witherspoon/Axios

Most of this debt lives in CLOs (collateralized loan obligations), where it doesn't pose a huge systemic risk. It would be much more dangerous if it was being held on banks' balance sheets. But there could be hundreds of billions of dollars in losses if a stock-market correction causes the leveraged-loan window to close.

  • The big picture: To put these numbers in perspective, total subprime mortgage originations peaked in 2006 at just over $600 billion.

Go deeper

Bryan Walsh, author of Future
1 hour ago - Science

The murder hornets are here

A braver man than me holds a speciment of the Asian giant hornet. Photo: Karen Ducey/Getty Images

Entomologists in Washington state on Thursday discovered the first Asian giant hornet nest in the U.S.

Why it matters: You may know this insect species by its nom de guerre: "the murder hornet." While the threat they pose to humans has been overstated, the invading hornets could decimate local honeybee populations if they establish themselves.

Biden is highest-spending political candidate on TV ads

Joe Biden. Photo: Sean Rayford/Getty Images

After spending an additional $45.2 million on political ads this week, former Vice President Joe Biden has become the highest-spending political candidate on TV ads ever, according to data from Advertising Analytics.

By the numbers: In total, the Biden campaign has spent $582.7 million on TV ads between 2019 and 2020, officially surpassing Michael Bloomberg's record spend of roughly $582 million. Biden's spend includes his primary and general election advertising.