Despite volatility in the first half of 2026 following the start of the Middle East war, the ensuing disruptions in the oil market, potential disruption to the software sector from developments in AI and uncertainty around the future path of interest rates, global debt issuance has accelerated significantly so far this year.
This trend has been fuelled by investment and capital expenditure related to AI and digital infrastructure, with non-financial, investment grade debt issuance growing by more than 50% globally in the first half of the year compared with the same period in 2025.
Global bond issuance – including financial and non-financial corporate investment grade and speculative grade bonds rated by S&P Global Ratings – totalled US$2.22trn in the first six months of the year, up 21.4% from the same period a year ago.
When asked whether geopolitical volatility and macroeconomic uncertainty had impacted his debt strategy this year and whether he had looked to diversify sources of funding, Gerard Tyler, Group Treasurer at uranium enrichment services, fuel cycle products and related solutions provider Urenco, suggests that uncertainty has become a key feature of the economic environment.
“Our approach has been to arrange funding in advance and not rely on one source of capital,” he explains. “It is better to have a modest cost of carrying cash than to have to pay to raise money in difficult times.”
But despite the increased bond issuance indicated by S&P Global Ratings, not all companies are looking to take on additional debt. Indeed, Tyler suggests that it is prudent to reduce debt when there is an opportunity as this provides flexibility further down the line.
“We spent a decade paying down debt and now that we are investing a lot more, we have the flexibility to finance this as our business grows again,” he says, adding that governments would do well to take a similar approach.
Meanwhile, new data from Eurostat has illustrated the extent to which debt levels for non-financial corporations vary across the EU.
Comparing debt levels to GDP for each country – including bank loans and debt securities such as corporate bonds but not counting loans made between companies in the same jurisdiction – the official statistical office of the European Union determined that average corporate debt was 70% of GDP at the end of last year.
Of the major European economies, French corporations had the highest level of corporate debt (91.6%). Despite the substantial cash reserves held by numerous French companies, their leverage continues to exceed the eurozone average.
Banque de France has previously cautioned that domestic enterprises experience comparatively elevated debt servicing expenses relative to many of their European counterparts, which in addition to leverage levels can also be explained by their greater reliance on floating-rate bank loans and France’s relatively modest economic growth outlook.
At the other end of the scale, Italian corporates’ average debt was just 55.1%. Tyler’s comment about the public sector taking a leaf from the private sector’s approach to improving its finances are particularly appropriate here given Italy’s high level of public sector debt.
