Fabulous, Beautiful Debt
Summary
Robin Wigglesworth joins Slate Money to discuss his new book, *A Fabulous Debt*, which explores the 1,000-year history of bonds and their role in building the modern world. The hosts and guest analyze the current bond market sell-off, debating whether rising yields signal inflation fears, a strong economy, or the increasing dominance of leveraged hedge funds over traditional central bank buyers. They also examine the paradox of national debt as both a liability and a sign of financial strength, while touching on the historical concept of debt jubilees and the complexities of sovereign defau…
Topics discussed
Introduction and guest welcome
Nerding out on bonds and song references
History of bonds and the 'Fabulous Debt' concept
How bond markets encourage transparency and accountability
Debt as an asset and the depth of the US Treasury market
Sovereign debt issuance and emerging market pride
Bond fraud, bad structures, and war financing
Historical bond bubbles and the 1820s em bond boom
Current bond market stress and types of risk
Duration, mortgage rates, and Fed credibility
Long-term rates, private competition, and normalcy
Inflation expectations and tech company bond issuance
Hedge funds as major Treasury holders and market brittleness
Debt sustainability metrics and MMT monetization
Debt jubilees, historical forgiveness, and HIPC program
Financial system fragility and the 2020 near-catastrophe
Quantitative easing and the Fed balance sheet
Numbers round: 5.033% yield on 5-year bonds
Iced coffee at job interviews and price inflation
Elizabeth Holmes, movie trailer, and 7% mortgage rates
Listen ad-free on Castria