Foreword
This is the first edition of the annual Global Debt Report, which examines sovereign and corporate bond markets, providing insights into current market conditions and associated policy considerations. It consolidates the Sovereign Borrowing Outlook, previously a standalone OECD publication, with chapters on corporate bond markets and sustainable bonds. The report draws from original OECD survey data provided by national authorities as well as OECD analysis of both commercial and public data sources.
Chapter 1 analyses sovereign debt developments for the period 2008-2024 with a focus on the OECD countries. It explores borrowing requirements and funding strategies; debt-to-GDP ratio dynamics; borrowing costs and yield curve shapes; interest payments and refinancing risks; and the effects of quantitative tightening on the investor base and market liquidity. This chapter draws on responses received to the OECD 2023 Survey on Primary Market Developments, the OECD 2023 Survey on Liquidity in Government Bond Secondary Markets, and the annual survey on the borrowing needs of OECD governments, all circulated in 2023. It also benefits from the direct contributions of members of the OECD Working Party on Debt Management (WPDM). This chapter does not cover supranational or sub-sovereign bond markets.
Chapter 2 explores how global corporate bond markets have evolved during a time of accommodative financial conditions in terms of credit quality, investor universe, and geographic and sectoral composition with a view to identifying the build-up of possible vulnerabilities. It then examines the implications of a changing macrofinancial landscape with sharp shifts in monetary policy for these markets, seeking to identify possible financial stability risks.
Chapter 3 focuses on the key characteristics of and trends in the sustainable bond market. It aims to inform policy discussion on the goals of investors when acquiring sustainable bonds, how these instruments may alter corporate and official sector issuers’ decisions, and what could be done to further develop the market for sustainable bonds.
Comments and questions should be addressed to the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs (e-mail: [email protected]).