Leverage in the financial sector increased significantly in the years leading up to the financial crisis, and the rise in debt was especially marked among the government-sponsored enterprises, their associated mortgage pools and issuers of asset-backed securities. However, debt in the financial sector currently stands nearly $2 trillion lower than at its peak ten years ago, and the debt-to-GDP ratio of the sector has receded to a 20-year low. Deleveraging has been especially pronounced in the asset securitization part of the sector. Any concerns that readers may have about American debt at this time should probably ... (full story)