Description
Global borrowing has hit historic highs meaning the resilience of debt markets is being tested. In 2025 alone, governments and companies raised USD 27 trillion, with borrowing projected to reach USD 29 trillion by 2026.
OECD financial market experts present what is driving today’s record global debt and why the coming years will be critical. Drawing on the OECD Global Debt Report 2026, they explore three major pressures reshaping debt markets: rising borrowing costs for governments and companies; a shift in investor bases from central banks to more price‑sensitive investors like hedge funds; and the rapidly growing role of technology firms as they tap debt markets to finance capital‑intensive AI expansion. Together, these trends raise refinancing risks and heighten vulnerability to shocks.
They highlights what governments can do to safeguard long‑term stability, from stronger fiscal prudence and efficient public spending, to credible monetary policy frameworks and robust public debt management.
As the OECD underlines, market resilience is not automatic: it is built on discipline, credibility, and sustainable policy choices.
Chapters
00:00 Borrowing hits historic highs | Carmine Di Noia, Director for Financial and Enterprise Affairs
01:40 What governments must do to protect debt market stability | Fatos Koc, Head of Financial Markets Unit
What you will learn in this video
Why has global borrowing reached historic highs, and how large is global debt issuance today?
Global borrowing rose as governments and companies increased financing needs. Debt market borrowing reached USD 27 trillion in 2025 and is projected to rise to USD 29 trillion in 2026. This represents USD 10 trillion more borrowing in four years.
How have debt markets remained resilient despite rising debt and global uncertainty?
Debt markets have remained resilient despite higher debt loads. This is notable given geopolitical stress, trade tensions, and economic uncertainty. Strong frameworks have supported stability so far.
What are the main challanges currently facing government and corporate debt markets?
Borrowing costs are rising for governments and companies. Investor bases are shifting toward price‑sensitive investors, and technology firms are increasing debt issuance to finance AI expansion. Together, these trends raise refinancing risks.
Why does the changing investor base increase financial market vulnerability?
Price‑sensitive investors like hedge funds are replacing central banks. While this boosts liquidity, it can increase sensitivity to shocks. Markets may therefore become more volatile.
What should governments do to ensure the long‑term stability of debt markets?
Governments must ensure debt sustainability through fiscal prudence and efficient public spending. They should preserve credible monetary policy frameworks and effective debt management. Resilience depends on discipline and credibility.
