Skip to content

A $1 Trillion Burden Looms for World Borrowers Refinancing Debt

  • The extra cost to issue bonds recently surged to a record
  • Global bonds extend losses to record fifth-straight quarter
Updated on

Governments and companies around the world are facing unprecedented costs to refinance bonds, a burden that’s set to deepen fissures in debt markets and expose more vulnerabilities among weaker borrowers. 

A corporate treasurer or finance minister looking to issue new notes now would likely have to pay interest that’s about 156 basis points higher on average than the coupons on existing securities, after that gap surged to a record in recent days. That all adds up to about $1.01 trillion in additional costs if all those securities were refinanced, according to calculations using a Bloomberg index tracking some $65 trillion of government and corporate debt across currencies.