Corporates Debt Asia Market Analysis 2024 - Asia Overtook Europe and US to be the Biggest Corporate Debtor

With outstanding amount of corporate bonds exceeding USD 9 trillion by 2024, compared to USD 5.1 trillion in the United States and USD 4.5 trillion in Europe, Asia’s leading corporates have become the biggest debtors in the world.

The research, conducted by OECD’s research team with market data from 2000 to 2024, found distribution of outstanding amounts in the global capital market has changed drastically over the past ten year, both globally and regionally. The outstanding amount of corporate bonds in Asia has exceed USD 9 trillion by 2024, making Asia’s big corporates the biggest debtors in the world.

The share of debt owed by high-leveraged companies in Asia significantly outpaced global corporate player. At the end of 2023, 58% of debt of Asian companies was owed by companies with debt-to-EBITDA ratios above 4, the research found, adding “In addition, companies with an interest coverage ratio below 2 represent nearly a fifth of total Asian corporate debt”.

The research also noted that “79% of all bonds issued in Asia between 2000 and 2024”lacked a rating by rating agencies.