PARIS, 06 March. - (ANA) - Global debt markets were resilient in 2025, with borrowing at historic highs. Governments and corporations borrowed USD 27 trillion and are expected to borrow USD 29 trillion in 2026, 17% more than in 2024. Our report analyses the latest trends in global sovereign and corporate debt markets, and the evolution of debt ownership. 

 

Global debt markets are navigating a difficult terrain. Geopolitical tensions, trade disputes, and an uncertain macroeconomic environment are adding pressure to already stretched markets. But debt markets have been resilient so far. This stability, however, masks deeper structural developments. The cost of long-term borrowing has risen, and the resulting shift in issuance towards shorter maturities increases refinancing risks. The growing role of more price-sensitive investors may also make debt markets more vulnerable to shocks. Their future resilience is therefore not guaranteed. This is particularly important as the scaling of AI and growing defence spending are expected to further increase borrowing from the markets. 

 

These challenges must be carefully managed to ensure that sovereign and corporate bond markets, with a combined size of USD 109 trillion, continue to provide stable financing to governments and corporations. The 2026 Global Debt Report aims to support efforts to sustain the resilience of debt markets.

 

 

 

 

Global debt markets proved resilient in 2025, despite borrowing levels reaching historic highs. Volatility has remained limited and corporate credit spreads neared record lows. However, shifts in the investor base are transforming these markets. More price-sensitive investors are providing much needed liquidity but may be increasing market sensitivity to shocks. Governments and companies have been shifting their issuance towards shorter maturities to mitigate the impact of rising long-term interest rates, increasing refinancing

risks. These risks must be carefully managed to ensure that sovereign and corporate bond markets, with a combined size of USD 109 trillion, continue to provide stable financing to governments and corporations.

 

This is especially important as they are set to play an increasing role in funding AI investment and defence spending, at a time when decisions on monetary policy, public debt and pension fund asset allocation are coming under growing pressure.

Governments and corporations are expected to borrow USD 29 trillion from markets in 2026, USD 4 trillion or 17% more than in 2024. Central government borrowing in OECD countries continued to grow in 2025, reaching USD 17 trillion, up from USD 12 trillion in 2022, and is expected to rise by a further USD 1 trillion in 2026. Outstanding sovereign bond debt now stands at a record USD 61 trillion, up from USD 55 trillion in 2024. Central government debt relative to GDP in OECD countries was stable at 83%, but is projected to rise to 85% in

2026, 39 percentage points higher than in 2007, before the global financial crisis. In emerging markets, sovereign bond issuance reached a record USD 3.4 trillion in 2025, 21% higher than in 2024, bringing the total debt stock to a record USD 12.1 trillion.

 

Much of the increase in borrowing is to refinance existing debt. In 2025, sovereign refinancing requirements in the OECD amounted to a record of around USD 13.5 trillion – near 80% of gross borrowing. This is up from USD 12 trillion in 2024, with projections for a further USD 1 trillion increase in 2026. At around USD 3.5 trillion, net borrowing requirements were stable in 2025 but remain substantially above pre-pandemic levels, and are projected to grow in 2026 to the highest level since 2020.

 

Private borrowing is also increasing. Corporate borrowing from markets reached its highest level ever in real terms in 2025 at about USD 13.7 trillion (USD 6.8 trillion in corporate bonds and USD 7 trillion in syndicated loans). Outstanding amounts reached USD 59.5 trillion at the end of the year, with USD 36.4 trillion in bonds and USD 23.1 trillion in syndicated loans. Given the scale of capital expenditure required to finance the expansion of AI, corporate borrowing needs are expected to continue increasing substantially.

 

Over the past five years, sustainable bonds have also become a more important source of capital market financing. Globally, the total amount issued through sustainable bonds was three times larger in 2021-2025 than in 2016-2020 for both the official and corporate sectors. Worldwide, companies issued USD 531 billion in sustainable bonds in 2025, while the official sector issued USD 486 billion. This represented a slight decline of 6% compared with the previous year, but was still more than 50% higher than in 2020.   - (ANA) -

 

 

To download the full report, visit: https://www.oecd.org/content/dam/oecd/en/publications/reports/2026/03/global-debt-report-2026_59d2d627/e9d80efd-en.pdf

 

AB/ANA/06 March 2026 - - -