Global borrowers have issued a record amount of debt in euros in 2025, nearly a fifth more than last year, according to data from Dealogic, reflecting a growing trend among investors to seek alternatives to the U.S. dollar.
Issuers have raised over $2.2 trillion in euro-denominated debt so far this year, figures from Dealogic showed, marking an increase of over 19% from 2024. The increase marks the third straight year of rising euro supply, although the pace has slowed slightly from the near 21% rise in 2024.
The surge in euro issuance volume could reflect a willingness among investors to diversify from the U.S. dollar , which has dropped over 9% this year against a basket of currencies, but is also a product of lower interest rates, particularly for emerging market issuers. Dealogic did not clarify if the $2.2 trillion total included both sovereign and corporate issuers. Deutsche Bank credit strategists, in a recent note, estimated that gross issuance in euros, for both investment grade and high yield corporate borrowers, was close to 1 trillion euros ($1.17 trillion) for the year. One major theme of 2025 has been whether U.S. President Donald Trump's aggressive trade and tariff policy would hinder the United States' ability to attract investment and capital, and whether investors would look to diversify elsewhere.
However, while markets in Europe and Asia have attracted increased flows this year, there have been no signs of funds getting redirected from U.S. assets as some had thought was possible.
U.S. stocks have regained their mantle as global leaders in the second half of the year, powered by a boom in artificial intelligence stocks, and U.S. Treasury bonds largely avoided a global selloff that has driven Japanese and German long-term yields near multi-year highs.
The amount of debt raised in euros also is still less than half of the $4.5 trillion raised in U.S. dollars in 2025 and less than a quarter of the $9.57 trillion raised in total, indicating that the dollar still remains the currency of choice for borrowers, the Dealogic data showed.
