She said public debt, which isn’t including entitlement spending, needs to be dealt with because the nation, as it is today, “is not going to grow our way out of it.” Jones said part of the problem is that “we are in a slow-growth world.”
Another potential problem for the economy and the bond market, Schwab officials said, is the high rate of corporate leverage.
“Corporate debt is surging,” Martin noted. And that means, if the economy suddenly went into a recession, there is the potential for a corporate bond bubble.