S&P upgrades global debt issuance outlook to $9T in 2024

S&P Global Ratings raised its forecast for global debt issuance growth in 2024, citing the prospect of continued positive momentum in the third quarter.

The US-based credit rating agency expected the global debt issuance—including corporate bonds, local entities, and structured debt—to increase by 17% to $9 trillion by the end of 2024.

S&P forecast in July a 9% annual rise in global debt sales to nearly $8.3 trillion, Bloomberg reported.

Debt issuances are expected to slow in 2025 to register an increase of only 4%, due to the anticipated rise in the base year and the slowdown in global economic growth.

Borrowers will welcome even modest interest rate cuts in 2025, after years of rapid rate hikes by central banks, S&P’s credit analysts said.

They estimated that easing borrowing costs could encourage mergers and acquisitions (M&As), and other growth and expansion plans that are financed through debt.

The report noted that global trade threats are one of the risks that may affect S&P estimates. These threats may affect inflation, which prompts central banks to slow down or reverse monetary easing efforts.