Group 1: Sovereign Debt Market - The issuance of sovereign bonds in OECD countries is projected to reach nearly USD 17 trillion in 2025, up from USD 16 trillion in 2024, driven by a surge in refinancing needs [2][47] - The debt-to-GDP ratio for OECD countries is expected to rise from 84% in 2024 to 85% in 2025, marking the first sustained increase since 2019 [2][47] - Borrowing costs have significantly increased, with fixed-rate bond yields maintaining near 4% in 2024, compared to below 1% in 2020-2021 [2][49] Group 2: Corporate Debt Market - Global corporate bond debt is expected to reach USD 35 trillion in 2024, recovering from a temporary contraction due to inflation [3][48] - There is a notable disconnect between debt costs and market rates, with 63% of investment-grade and 74% of non-investment-grade bonds having interest costs below current market rates [3][49] - A significant portion of corporate debt has been used for refinancing (72%) and shareholder returns (9%), rather than productive investments, raising sustainability concerns [3][51] Group 3: Emerging Market Debt - The sovereign bond market in emerging markets has expanded from USD 4 trillion in 2007 to nearly USD 12 trillion in 2024, with annual issuance surpassing USD 3 trillion [4][47] - Low-income countries face severe refinancing challenges, with over 50% of their debt maturing by 2025, highlighting significant refinancing risks [4][50] - The actual yield on local currency bonds in low-income countries has surged to over 7%, exacerbating debt servicing pressures [4][50] Group 4: Climate Transition Financing - The global investment requirement for climate transition exceeds USD 4 trillion annually, yet actual investments are only around USD 2 trillion, indicating a substantial financing gap [5][54] - Emerging markets, excluding China, may face a cumulative financing gap of USD 10 trillion by 2050 if current investment trends continue [5][54] - The report emphasizes the need for innovative financing strategies to mobilize capital for climate transition, particularly in emerging markets [5][54]