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At the end of last year, the global bond market was worth around 100 billion dollars (around 93 billion euros, at the exchange rate at the time) and the threats it faces over the next three years will shape the management of public and corporate debt on a global scale. . The survey of these risks was published this week in the first edition of the OECD (Organization for Economic Cooperation and Development) Global Debt Report. This amount of debt is almost equal to the world’s Gross Domestic Product (GDP) and includes public and corporate debt in medium and long-term bonds.
The report highlights several global risks. On the one hand, the impact of the ‘flooding’ of the market by bonds that the main central banks of the OECD economies will dispose of, including the European Central Bank (ECB). On the other hand, the volume of bonds that will mature in the next three years, which in the case of public debt alone amounts to 40% of the current stock of bonds on a global scale.
The OECD also draws attention to the imminent danger of a portion of corporate debt being downgraded to a ‘financial junk’ rating, warning of the high level of indebtedness of several OECD economies that will be faced with the need for an effective reduction in debt and not just the ratio in the Gross Domestic Product (GDP), and highlights the situation of Chinese corporate debt.
