U.S. Could Face More Debt Refinancing Risk Than Eurozone: UBS

With debt equating to over 40% of U.S. GDP set to mature and need refinancing by the end of 2020, analysts at UBS reckon the U.S. Treasury could be paying as much as 2.00% interest on debt by 2020.

John Wraith and Joakim Tiberg of UBS in their August 14, 2015 research note titled: “Who said Europe can’t withstand higher yields?” point out that U.S. could witness significant fiscal drag from rising yields.

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A lot of US debt set to mature and need refinancing in next few years

Wraith and Tiberg point out that among the advanced economies they analyze, the U.S. has comfortably the lowest average maturity on its outstanding government debt, at just 5.8 years. Among the advanced economies...