Late 2023, corporate bond spreads widened to 140 basis points as leverage concerns spread through US markets. In 2023, S&P 500 companies averaged a debt-to-equity ratio of 1.58, and the pressure showed up across balance sheets. Leverage buyout deals in 2023 priced EBITDA at an average multiple of 11.2x while retail debt service coverage fell to 1.7x.
Key Takeaways
- In 2023, the average debt-to-equity ratio for S&P 500 companies reached 1.58, indicating heightened corporate leverage amid low interest rates
- US nonfinancial corporate debt outstanding totaled $20.4 trillion in Q4 2023, up 5.2% year-over-year
- The net debt-to-EBITDA ratio for Russell 3000 firms averaged 2.1x in 2023
- US banks' Tier 1 leverage ratio averaged 7.2% in Q4 2023
- Global systemically important banks (G-SIBs) leverage ratio was 6.8% in 2023
- European banks' CET1 leverage exposure grew 4% YoY to €45 trillion in 2023
- Global financial leverage ratio (credit/GDP gap) was +3% in advanced economies 2023
- Emerging Asia debt-to-GDP leverage at 260% in 2023
- World total debt hit $305 trillion or 336% of GDP in 2023
- US general government gross debt hit 123% of GDP in 2023
- Japan's public debt-to-GDP ratio reached 255% in 2023, highest globally
- Euro area government debt averaged 88% of GDP in 2023
- US household debt reached $17.5 trillion in Q4 2023, with leverage at 75% of disposable income
- Mortgage debt as a share of US household assets was 28% in 2023
- Student loan debt totaled $1.6 trillion in 2023, averaging $37,000 per borrower
In 2023, corporate leverage rose across global markets, tightening credit as debt burdens climbed.
Related reading
01 · Category
Corporate Leverage15 stats
01
In 2023, the average debt-to-equity ratio for S&P 500 companies reached 1.58, indicating heightened corporate leverage amid low interest rates
02
US nonfinancial corporate debt outstanding totaled $20.4 trillion in Q4 2023, up 5.2% year-over-year
03
The net debt-to-EBITDA ratio for Russell 3000 firms averaged 2.1x in 2023
04
Leverage buyout (LBO) transactions in 2023 featured average EBITDA multiples of 11.2x, highest since 2007
05
Corporate bond spreads widened to 140 basis points in late 2023 due to leverage concerns
06
European corporates' interest coverage ratio fell to 4.5x in 2023 from 6.2x in 2021
07
Global corporate leverage peaked at 98% of GDP in 2022 before easing to 95% in 2023
08
Tech sector leverage ratio hit 2.3 debt-to-equity in Q3 2023
09
Energy firms' net leverage averaged 1.8x EBITDA in 2023, down from 2.5x in 2020
10
Retail sector debt service coverage ratio dropped to 1.7x in 2023
11
S&P 500 gross margin leverage to revenue was 1.12x in 2023
12
Fortune 500 firms' average leverage ratio 2.4 debt/EBITDA 2023
13
Airline industry leverage hit 4.2x post-pandemic 2023
14
Real estate REIT leverage averaged 6x 2023
15
Pharma sector net leverage 1.9x EBITDA 2023
Interpretation
Corporate Leverage Interpretation
From the boardroom to the buyout, corporate America is collectively leaning on a mountain of cheap debt like a tipsy reveler on a lamppost, with everyone from tech giants to retailers looking increasingly vulnerable to the sobering sunrise of higher rates.
02 · Category
Financial Sector Leverage15 stats
01
US banks' Tier 1 leverage ratio averaged 7.2% in Q4 2023
02
Global systemically important banks (G-SIBs) leverage ratio was 6.8% in 2023
03
European banks' CET1 leverage exposure grew 4% YoY to €45 trillion in 2023
04
Shadow banking assets hit $67 trillion globally in 2023, 14% leverage amplification
05
Hedge fund gross leverage averaged 4.5x in 2023
06
Investment bank balance sheet leverage was 15x in 2023 for top firms
07
US money market funds leverage ratio under regulatory scrutiny at 1.2x in 2023
08
Insurance sector leverage (assets/equity) averaged 4.1x globally in 2023
09
Broker-dealer leverage in US peaked at 28x in 2023
10
Fintech lending platforms operated at 8x leverage in 2023
11
Tier 1 leverage for Chinese banks averaged 8.5% 2023
12
US prime broker leverage to clients 10x average 2023
13
Pension fund leverage via derivatives 2.5x in OECD 2023
14
Crypto exchange leverage trading volumes $3T monthly peak 2023
15
Global reinsurance leverage 3.8x premiums to equity 2023
Interpretation
Financial Sector Leverage Interpretation
While regulators are diligently patrolling the modest leverage ratios of traditional banks, a vast, multi-trillion-dollar circus of shadow bankers, hedge funds, and crypto traders is quietly performing high-wire acts with significantly less netting.
03 · Category
Global Leverage18 stats
01
Global financial leverage ratio (credit/GDP gap) was +3% in advanced economies 2023
02
Emerging Asia debt-to-GDP leverage at 260% in 2023
03
World total debt hit $305 trillion or 336% of GDP in 2023
04
Latin America corporate leverage averaged 45% of GDP in 2023
05
Middle East non-oil sovereign leverage at 35% GDP in 2023
06
Sub-Saharan Africa public-private leverage combo 60% GDP 2023
07
Advanced economies total leverage stabilized at 265% GDP in 2023
08
Global M&A leverage multiples averaged 10.8x EBITDA in 2023
09
Cross-border bank leverage flows grew 6% to $12 trillion in 2023
10
Australia household leverage at 185% disposable income in 2023
11
Canada total non-financial leverage 270% GDP in 2023
12
India corporate leverage eased to 5.5x net debt/EBITDA 2023
13
South Korea household debt 105% GDP, highest in Asia 2023
14
Switzerland banking leverage ratio mandated at 3% minimum, actual 7.5% 2023
15
Turkey total leverage 150% GDP amid inflation 2023
16
South Africa sovereign leverage 75% GDP 2023
17
Mexico corporate leverage 40% GDP 2023
18
Russia public debt leverage low at 17% GDP despite sanctions 2023
Interpretation
Global Leverage Interpretation
Our world is now a carefully balanced, debt-fueled seesaw where everyone from Swiss bankers to Korean households is leaning hard on borrowed time, yet somehow we're all still pretending the ground isn't crumbling beneath our feet.
04 · Category
Government Leverage16 stats
01
US general government gross debt hit 123% of GDP in 2023
02
Japan's public debt-to-GDP ratio reached 255% in 2023, highest globally
03
Euro area government debt averaged 88% of GDP in 2023
04
Interest payments on US federal debt consumed 14% of revenues in FY2023
05
China's general government debt rose to 83% of GDP in 2023
06
Brazil's public debt-to-GDP hit 78% in 2023 amid fiscal pressures
07
Italy's debt-to-GDP ratio stood at 140% in 2023
08
Greece improved to 165% debt-to-GDP in 2023 from 206% in 2019
09
Emerging markets sovereign debt averaged 65% of GDP in 2023
10
Global public debt reached $91 trillion or 93% of GDP in 2022, stabilizing in 2023
11
Debt-to-GDP US federal 122.3% end-2023
12
UK public sector net debt 97.9% GDP FY2023
13
Argentina sovereign debt 90% GDP post-restructuring 2023
14
Egypt external debt $165B or 40% GDP 2023
15
US states average leverage 15% revenues to debt service 2023
16
Municipal bond leverage issuance $450B in 2023 US
Interpretation
Government Leverage Interpretation
The world is collectively living in a fiscal house of cards, where the only thing growing faster than our economies is our collective tab, and we're all just hoping the music doesn't stop.
05 · Category
Household Leverage17 stats
01
US household debt reached $17.5 trillion in Q4 2023, with leverage at 75% of disposable income
02
Mortgage debt as a share of US household assets was 28% in 2023
03
Student loan debt totaled $1.6 trillion in 2023, averaging $37,000 per borrower
04
Credit card debt hit $1.08 trillion in Q4 2023, up 8.4% YoY
05
Household debt-to-GDP ratio in the US stood at 76% in 2023
06
Auto loan delinquencies rose to 3.2% in Q3 2023 for US households
07
Eurozone household debt-to-income ratio averaged 95% in 2023
08
UK household leverage peaked at 135% of disposable income in 2023
09
Chinese household debt surged to 62% of GDP in 2023
10
Japanese household debt service ratio was 12.5% in 2023
11
US HELOC balances up 10% to $320B, leverage rising 2023
12
Delinquency rates on US personal loans 4.8% Q4 2023
13
Home equity debt leverage 6% of US home values 2023
14
Gen Z household leverage growing fastest at 12% YoY 2023
15
Senior households debt median $50k, leverage 20% assets 2023
16
France household leverage 60% GDP 2023
17
Germany household debt service 7% income 2023
Interpretation
Household Leverage Interpretation
America is building a towering wobbly Jenga of debt, from mortgages to credit cards, and the global neighbors aren't far behind, all while a suspiciously large number of blocks are being pulled from the bottom.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Lars Eriksen. (2026, February 27). Leverage Statistics. Gitnux. https://gitnux.org/leverage-statistics
MLA
Lars Eriksen. "Leverage Statistics." Gitnux, 27 Feb 2026, https://gitnux.org/leverage-statistics.
Chicago
Lars Eriksen. 2026. "Leverage Statistics." Gitnux. https://gitnux.org/leverage-statistics.
Sources & references
65 datasets cited across this report · attribution is report-level