Back to today’s briefing

Story perspectives

Corporate Debt Soars Despite Rising Bankruptcy Risks

9/25/2025

27 4

Summary

Story summary

Corporate debt markets are narrowing in spreads; borrowers now pay lower rates than governments.
Moody's estimates a 2.4% annual loss for high-yield bonds due to rising bankruptcies.
Despite risk, corporate debt remains attractive.
In Europe, high-yield borrowers average 3.2x EBITDA, up from 2024.
By 2030, public debt in major Western economies is projected at 115% of GDP.

1 of 1

Story summary

Corporate debt markets are narrowing in spreads; borrowers now pay lower rates than governments.
Moody's estimates a 2.4% annual loss for high-yield bonds due to rising bankruptcies.
Despite risk, corporate debt remains attractive.
In Europe, high-yield borrowers average 3.2x EBITDA, up from 2024.
By 2030, public debt in major Western economies is projected at 115% of GDP.