How should we interpret the rise in the global debt ratio?

The world’s total debt ratio has risen considerably, which is worrying since the risk of borrower defaults may also have risen. But what may account for the rise in the global total debt ratio? Two very different developments: The parallel increase in savings (in the financing capacity of lending economic agents) and investment (in the financing requirement of borrowing economic agents), which is not a worrying development; The increase in debt leverage (debt relative to equity) for borrowing economic agents, which is a worrying development, which may be linked to the fall in the cost of debt. We see that the first explanation (parallel increase in savings and in investment) seems to be the right one. The rise in the global debt ratio is therefore perhaps not so worrying.