Global debt markets soar to $100 trillion
Monday 10 March 2014
Global debt markets surged to an estimated $100 trillion in mid-2013 from $70 trillion in mid-2007 as governments borrowed their way out of the financial crisis and companies sold record levels of bonds to take advantage of low interest rates.
The latest quarterly review from the Bank for International Settlements, said “active issuance by governments and non-financial corporations has lifted the share of domestically issued bonds, whereas more restrained activity by financial institutions has held back international issuance.”
The report said that given the massive expansion in public spending in recent years, governments globally — including central, state and local governments — have been the largest debt issuers.
Debt outstanding in these governments’ domestic markets reached $43 trillion in June 2013 – up about 80 percent from mid-2007.
“Debt issuance by non-financial corporates has grown at a similar rate, albeit from a lower base,” said the report.
“As with governments, non-financial corporations primarily issue domestically. As a result, amounts outstanding of non-financial corporate debt in domestic markets surpassed $10 trillion in mid-2013.
“The substitution of traditional bank loans with bond financing may have played a role, as did investors' appetite for assets offering a pickup to the ultra-low yields in major sovereign bond markets.”
The report said financial sector deleveraging after the financial crisis has been a main reason for slower growth of international compared to domestic debt markets. Financial companies have traditionally been the biggest sellers of bonds in international debt markets.
Debt sold by financial firms in the international market has grown by only 19 percent since mid-2007.
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe in bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Hitler’s food taster reveals the horrors of the Wolf’s Lair
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe in bikinis
Scottish independence: Final opinion polls show undecided voters could swing the result either way
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s food taster reveals the horrors of the Wolf’s Lair
Alan Henning: British Muslim leaders unite to call on Isis to release hostage
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...