Global leverage is at a historic high of 349% based upon global debt-to-GDP--more than 25% higher than the 278% in the pre-2008 financial crisis era. Specifically, rated sovereigns took advantage of the protracted period of low interest rates that central banks had maintained, to expand their debt-to-GDP ratio by more than one-third, to a projected 87% in 2022, from 62% in 2008. Resolving the debt overhang, amid slower growth and higher interest rates, could be painful--with governments cutting expenditures and borrowers defaulting.