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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

Dan Primack, author of Pro Rata
15 mins ago - Economy & Business

Private equity's other tax fight

Illustration: Rae Cook/Axios

Private equity is carefully watching the D.C. debate on corporate taxes, in which Senate Democrats seem to be settling on a 25% rate.

Zoom in: Marginal rates obviously matter, but for PE it's just an appetizer before the weedier work begins on issues like corporate interest deductibility.

Making sense of Biden's big emissions promise

Illustration: Sarah Grillo/Axios

President Biden's new U.S. emissions-cutting target is a sign of White House ambition and a number that distills the tough political and policy maneuvers needed to realize those aims.

Driving the news: This morning the White House unveiled a nonbinding goal under the Paris Agreement that calls for cutting U.S. greenhouse gas emissions by 50%-52% by 2030 relative to 2005 levels.

Biden pledges to cut greenhouse gas emissions by up to 52% by 2030

U.S. President Joe Biden seen in the Oval Office on April 15. (Photo by Doug Mills-Pool/Getty Images)

The Biden administration is moving to address global warming by setting a new, economy-wide greenhouse gas emissions reduction target of 50% to 52% below 2005 levels by 2030.

Why it matters: The new, non-binding target is about twice as ambitious as the previous U.S. target of a 26% to 28% cut by 2025, which was set during the Obama administration. White House officials described the goal as ambitious but achievable during a call with reporters Tuesday night.