Emerging market surge lifts global debt total to record above $365 trillion

The report also highlighted surging borrowing linked to AI investment. US non-financial corporate debt reached $24 trillion, while private credit loans now account for more than 5% of that debt, up from roughly 1% in 2014.

The IIF said there was little evidence so far that AI-related borrowing had crowded out US Treasuries or emerging-market issuers, though growing long-dated corporate issuance could eventually add to upward pressure on long-term Treasury yields.

Global debt stood at about 310% of GDP, some 25 percentage points below its early-2021 peak, though the IIF said that largely reflected inflation lifting nominal GDP rather than genuine deleveraging.

The report comes as US Treasury yields have surged to multi-year highs, raising government refinancing costs. The benchmark 10-year yield has climbed to its highest since 2007, while the 30-year yield has reached levels not seen in nearly two decades.