As of July 1, 2024, outstanding corporate debt in the United Kingdom (UK) was largely composed of investment grade rather than speculative grade. This was the case for both financial and non-financial ratings. Notably, non-financial institutions accounted for almost 60 percent of the total corporate debt in the country, amounting to over one trillion U.S. dollars. Companies based in the UK made up for the second-largest share of corporate debt globally, with approximately 1.69 trillion U.S. dollars in rated debt.

In the third quarter of 2024, the outstanding debt securities from UK financial corporations was four times greater than those from non-financial corporations. The total outstanding debt amounted to 2.8 trillion U.S. dollars as of the third quarter of 2024, with the majority of outstanding corporate bonds being issued by financial corporations.

Key information about United Kingdom Private Debt: % of Nominal GDP

• United Kingdom Private Debt accounted for 113.96 % of its Nominal GDP in Dec 2024, compared with a ratio of 116.11 % in the previous quarter
• UK Private Debt contribution to Nominal GDP ratio is updated quarterly, available from Jun 1998 to Dec 2024, with an average share of 135.26 %
• The data reached an all-time high of 203.16 % in Mar 2010 and a record low of 101.90 % in Dec 1998

CEIC calculates quarterly Private Debt as % of Nominal GDP from monthly Private Debt and quarterly Nominal GDP. Private Debt is calculated as the sum of Private Loans and Private Securities in GBP and Foreign Currency. The Bank of England provides Private Debt in local currency. Office for National Statistics provides Nominal GDP in local currency. Private Debt includes Financial Sector.

Private Debt to GDP in the United Kingdom decreased to 75.70 percent in 2024 from 79.30 percent in 2023. United Kingdom Private Debt to GDP - values, historical data, forecasts and news - updated on June of 2025.

UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities: Market Value data was reported at 2.458 USD bn in Jun 2018. This records a decrease from the previous number of 2.596 USD bn for Mar 2018. UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities: Market Value data is updated quarterly, averaging 5.005 USD bn from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 35.642 USD bn in Jun 2015 and a record low of 301.882 USD mn in Jun 2001. UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities: Market Value data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QPSD: Gross Public Debt: Non Financial Public Corporations.

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Debt Financing Market Size 2025-2029

The debt financing market size is forecast to increase by USD 7.89 billion at a CAGR of 6.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the tax advantages of debt financing for businesses. The ability to deduct interest payments from taxable income makes debt financing an attractive option for companies seeking capital. Another key trend in the market is the increasing collaboration and mergers and acquisitions (M&A) activity, which often involves the use of debt financing to fund transactions. However, it is important to note that collateral may be necessary for some forms of debt financing, adding layer of complexity to the process.
Companies seeking to capitalize on these opportunities must navigate the challenges of securing adequate collateral and managing debt levels to maintain financial health and wellness. Effective debt management strategies, such as optimizing debt structures and maintaining strong credit ratings, will be essential for companies looking to succeed in this dynamic market. Debt financing is a significant component of the regional capital markets, with financial institutions, banks, and insurance companies serving as major players.

What will be the Size of the Debt Financing Market during the forecast period?

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The market encompasses various debt instruments issued by entities to secure funds for business operations and growth. Market dynamics are influenced by several factors, including interest rate cycles, monetary policy, and economic growth. Basel Accords and the Financial Stability Board set standards for financial institutions' risk management and capital adequacy, impacting debt issuance. Government debt, securitization transactions, and various debt instruments like interest rate swaps, loan-to-value ratios, and credit-linked notes, shape the market landscape. Market volatility, driven by factors such as business cycles, credit spreads, and risk appetite, influences investor sentiment. Debt sustainability, fiscal policy, and ESG investing are increasingly important considerations for issuers and investors.
Asset managers are focusing on leveraging technology and data analytics to improve operational efficiency and meet the evolving needs of investors. The market is, however, not without challenges, with regulatory compliance and interest rate risks being major concerns. Overall, the income asset management market in North America is poised for steady growth, driven by the demand for debt financing and wealth management solutions, and the increasing adoption of advanced analytics and ETFs.

How is this Debt Financing Industry segmented?

The debt financing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Private
  Public


Type

  Long-term
  Short-term
  Long-term


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    Japan
    South Korea


  Middle East and Africa



  South America

By Source Insights

The private segment is estimated to witness significant growth during the forecast period. Debt financing is a popular financing method for businesses seeking to expand operations while maintaining ownership. Private debt financing, in particular, has gained significant traction among financial specialists worldwide due to its importance in funding small- and mid-sized organizations globally. The demand for debt financing by startups has increased annually, leading to the sector's substantial growth over the last five years. This financing option's flexibility enables businesses to customize their financing solutions to address specific needs, making it an allure for numerous organizations. Private debt financing encompasses various instruments such as Real Estate Debt, Term Loans, Leveraged Buyouts, Asset Securitization, Infrastructure Financing, Loan Servicing, and more.

Financial Leverage, Debt Covenants, Credit Risk, and Interest Rate Risk are essential considerations in this sector. Hedge Funds, Collateralized Loan Obligations, High Yield Debt, and Investment Grade Debt are alternative investment areas. Private Equity, Syndicated Loans, Venture Debt, Bridge Financing, and Mezzanine Financing are also integral components. Financial Institutions offer various debt financing solutions, including Capital Markets, Expansion Financing, Growth Capital, Debt Refinancing, and Debt Consolidation. Financial Modeling, Return on Investment, and Risk Management are crucial aspects of debt financing. Debt Advisory, Financial Engineering, and Debt Capital Markets are essential services in this field. Small Business Loans, Supp

United Kingdom UK: Gross Public Debt: % of GDP: Non Financial Public Corporations: Debt Securities: Market Value data was reported at 0.090 % in Jun 2018. This records an increase from the previous number of 0.090 % for Mar 2018. United Kingdom UK: Gross Public Debt: % of GDP: Non Financial Public Corporations: Debt Securities: Market Value data is updated quarterly, averaging 0.180 % from Mar 1995 (Median) to Jun 2018, with 94 observations. The data reached an all-time high of 1.211 % in Jun 2015 and a record low of 0.019 % in Jun 2001. United Kingdom UK: Gross Public Debt: % of GDP: Non Financial Public Corporations: Debt Securities: Market Value data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QPSD: Gross Public Debt: % of GDP: Non Financial Public Corporations.

This statistic shows ten leading UK investment funds in the category "sterling corporate bonds" ranked by the performance value in five-year period as of end of November 2023. An investor looking to make a 100 British pound investment in November 2019 with the leading fund would have a value of 115 British pounds by the end of November 2024.

Graph and download economic data for Amount Outstanding Due within One Year of International Debt Securities for Financial Corporations Sector, Residence of Issuer in West Indies UK (DISCONTINUED) (IDS1YMAORIFC1Z) from Q3 1993 to Q2 2015 about British West Indies, finance companies, 1-year, companies, finance, sector, financial, debt, residents, and securities.

Graph and download economic data for Amount Outstanding of International Debt Securities for Issuers in Other Financial Corporations, All Maturities, Residence of Issuer in West Indies UK (DISCONTINUED) (IDSOFAMRIAO1Z) from Q1 1987 to Q2 2015 about British West Indies, finance companies, companies, finance, maturity, financial, debt, residents, and securities.

Graph and download economic data for Amount Outstanding of International Debt Securities for Issuers in Other Financial Corporations, All Maturities, Nationality of Issuer in West Indies UK (DISCONTINUED) (IDSGFCAMNIAO1Z) from Q3 1993 to Q2 2015 about British West Indies, finance companies, companies, finance, maturity, financial, debt, and securities.

Graph and download economic data for Net Issues of International Debt Securities for Issuers in Non-Financial Corporations (Corporate Issuers), All Maturities, Nationality of Issuer in West Indies UK (DISCONTINUED) (IDSGNFAMNINI1Z) from Q3 1994 to Q2 2012 about British West Indies, issues, nonfinancial, maturity, debt, securities, corporate, and Net.

Graph and download economic data for Amount Outstanding Due within One Year of International Debt Securities for Non-financial Corporations Sector, Residence of Issuer in West Indies UK (DISCONTINUED) (IDS1YMAORINC1Z) from Q4 1993 to Q2 2015 about British West Indies, 1-year, nonfinancial, sector, debt, residents, securities, and corporate.

Government debt in the United Kingdom reached over 2.8 trillion British pounds in 2024/25, compared with 2.69 trillion pounds in the previous financial year. Although debt has been increasing throughout this period, there is a noticeable jump between 2019/20, and 2020/21, when debt increased from 1.82 trillion pounds, to 2.15 trillion. The UK's government debt was the equivalent of 95.8 percent of GDP in 2024/25, and is expected to increase slightly in coming years, and not start falling until the end of this decade. Public finances in a tight spot With government debt approaching 100 percent of GDP, the UK finds itself in a tricky fiscal situation. If the UK can't reduce it's spending, or increase its revenue, the government will have to continue borrowing large amounts, increasing the debt further. Adding to the problem, is the fact that financing this debt has got steadily more expensive recently, with the government currently spending more on debt interest than it does on defence, transport, and public order and safety. Can the UK grow out its debt? After the Second World War, when the national debt reached over 250 percent of GDP, the UK managed to reduce its debt-to-GDP ratio, due to the economy growing faster than its debt over a long period of time. This is certainly the hope of the current Labour government, who are seeking to avoid significant tax and spending adjustments by strengthening the economy. Overdue investments in infrastructure and increased capital spending may eventually achieve this goal, but the government's declining popularity suggests they may not be in power by the time these policies might eventually bear fruit.

Households Debt in the United Kingdom decreased to 76.30 percent of GDP in the fourth quarter of 2024 from 77.20 percent of GDP in the third quarter of 2024. This dataset provides - United Kingdom Households Debt To Gdp- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Market Size statistics on the Debt Collection Agencies industry in United Kingdom

Public sector net debt amounted to 95.8 percent of gross domestic product in the United Kingdom during the 2024/25 financial year, or 90 percent when the Bank of England is excluded. UK government debt is at its highest levels since the early 1960s, due to a significant increase in borrowing during the COVID-19 pandemic. After peaking at 251.7 percent shortly after the end of the Second World War, government debt in the UK gradually fell, before a sharp increase in the late 2000s at the time of the global financial crisis. Debt not expected to start falling until 2029/30 In 2024/25, the UK's government expenditure was approximately 1.28 trillion pounds, around 44.7 percent of GDP. This spending was financed by 1.13 trillion pounds of revenue raised, and 151 billion pounds of borrowing. Although the UK government can still borrow money in the future to finance its spending, the amount spent on debt interest has increased significantly recently. Recent forecasts suggest that while the debt is eventually expected to start declining, this is based on falling government deficits in the next five years. Government facing hard choices Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books from the current government, and the possibility for either spending cuts or tax rises. Although Labour ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, at the 2024 election, they did raise National Insurance for employers (rather than employees) and also cut Winter Fuel allowances for large numbers of pensioners. Less than a year after implementing cuts to Winter Fuel, the government performed a U-Turn on the issue, and will make it widely available by the winter of 2025.

UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities data was reported at 2.569 USD bn in Mar 2018. This records an increase from the previous number of 2.559 USD bn for Dec 2017. UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities data is updated quarterly, averaging 5.077 USD bn from Mar 1995 (Median) to Mar 2018, with 93 observations. The data reached an all-time high of 35.642 USD bn in Jun 2015 and a record low of 301.882 USD mn in Jun 2001. UK: Gross Public Debt: USD: Non Financial Public Corporations: Debt Securities data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: QPSD: Gross Public Debt: Non Financial Public Corporations.

Southern Water Services Limited held a net debt of 5.7 billion British pounds in 2023. This was equivalent to 2,658 British pounds per property provided with water, which was the highest debt owed per property among England's water companies. Northumbrian Water Limited followed, with a net debt of 2,628 pounds per property connection as of the same year.