The increase in euro issuance volume could reflect a willingness among investors to diversify against the US dollar, which has fallen more than 9% against a basket of currencies this year, but is also a product of lower interest rates, especially for emerging market issuers. Dealogic did not clarify whether the $2.2 trillion total included both state and corporate issuers. Credit strategists at Deutsche Bank estimated in a recent note that gross issuance in euros, for both investment grade and high-yield corporate borrowers, was almost 1 trillion euros ($1.17 trillion) this year. A key theme for 2025 was whether US President Donald Trump’s aggressive trade and tariff policies would hamper the United States’ ability to attract investment and capital, and whether investors would look to diversify elsewhere.
While markets in Europe and Asia have attracted larger flows this year, there have been no signs of funds being diverted from U.S. assets as some had thought possible.
U.S. stocks regained their global leadership position in the second half of the year, powered by a boom in artificial intelligence stocks, and U.S. Treasuries have largely avoided a global sell-off that has pushed Japanese and German long-term yields to near multi-year highs.
The amount of debt raised in euros is also still less than half of the $4.5 trillion raised in US dollars by 2025 and less than a quarter of the total $9.57 trillion. This indicates that the dollar still remains the currency of choice for borrowers, Dealogic data shows.
($1 = 0.8539 euros)
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