A large year for bond financing
The OECD’s Global Debt Report 2026 puts global corporate bond issuance in 2025 at $6.8 trillion. That is a bond figure. The report’s broader corporate borrowing total also includes syndicated loans, so the two measures should not be used interchangeably.
Source: OECD Global Debt Report 2026.
Follow the use of the proceeds
Borrowing can replace an approaching maturity, finance productive investment or fund a distribution to shareholders. Each choice changes the creditor’s position differently. A company that raises new debt to retire an equal amount of old debt has not necessarily increased its borrowing burden.
The refinancing cost still matters. Replacing a low coupon obligation with a more expensive one can weaken interest coverage even if the principal remains unchanged. Investors need both the debt balance and the interest bill.
Access is not protection
Our reading is that abundant issuance increases the importance of security selection. Successful placement shows that buyers accepted the terms at that moment. It does not establish that cash generation will be sufficient through a downturn.
Useful questions include how much debt comes due before the next major investment generates cash, whether liquidity is committed or merely expected, and where the bond ranks if the business is restructured.
Compare companies on similar accounting definitions and include material leases or guarantees where relevant. A headline debt multiple without that context can make two borrowers appear more comparable than they are.
For existing holders, the crucial follow up is whether new funding extends the repayment runway or simply postpones a cash flow problem.
Photo: Historical photograph of Lower Manhattan in New York. Credit: Percival Kestreltail via Wikimedia Commons. Licensed under CC BY SA 3.0. Displayed with a responsive crop. The photograph illustrates the location or subject and does not depict the reported transaction.
