Financial news app learned that according to the credit trend report released by s&p global ratings on October 23, the institution has raised its previous forecast, stating that the growth momentum since the third quarter may continue, and global bond sales this year will increase by 17% to about $9 trillion. In addition, due to the expected high issuance volume this year, combined with the slowdown in economic growth, the institution states that the issuance speed of bonds, including municipal bonds, corporate bonds, and structured bonds, may slow to 4% by 2025.

Standard & Poor's credit research analysts, including Nick Kraemer, wrote in the report: "After years of rapid rate hikes by central banks and the disappointment of past rate cut expectations, borrowers will be hopeful of rate cuts in 2025, even if the rate cuts are not substantial." "Lower rates may stimulate more growth-oriented debt demand."Mergerand other growth-oriented debt demand.

Despite relatively high rates and geopolitical tensions, this finding is consistent with other strong signs of bond market activity this year. Analysts say market participants have reached a "relative consensus" on rate cuts next year, which may also help boost bond issuance.

Due to the impact of strong third-quarter economic activity, S&P has raised its previous expectations. According to Bloomberg compiled data, in September alone, over 1,226 issuers sold over $600 billion in bonds, the highest monthly bond issuance in over 20 years. In July of this year, S&P analysts had predicted that sales in 2024 would increase by 9% to around $8.3 trillion.

S&P stated that maturing debts, China's measures to boost economic growth, and higher investments in artificial intelligence may drive global bond issuance in the coming years.

The report states that the 2025 forecast still faces some risks, including threats to global trade, which may affect inflation and force central banks around the world to slow down or pause interest rate cuts.