Global debt issuance to dip to $8 trillion in 2021 – S&P Global

Buildings are seen in the Canary Wharf business district, amid the outbreak of the coronavirus disease (COVID-19), in London, Britain January 27, 2021. REUTERS/Peter Cziborra

LONDON (Reuters) – The amount of debt issued by governments and companies around the world is expected to dip to $8 trillion this year, credit rating firm S&P Global has estimated.

The amount would be down roughly 3% from 2020’s record high when countries and companies borrowed heavily to plug the holes the coronavirus left in their finances, but it would still be nearly 15% higher than pre-COVID levels.

“Despite a likely decline, supporting factors for issuance in the year ahead include still-favorable financing conditions,” S&P said in a report, “anchored by increasing amounts of sovereign debt with negative yields, and a rejuvenated merger and acquisition pipeline for corporations.”

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