From The Economic Times · Reuters · · 1m 10s
Global Bond Issuance Growth Slows in 2027
S&P Global Ratings predicts global bond issuance will grow at its slowest pace in five years in 2027 due to rising interest rates and Middle East war uncertainties.
In brief
S&P Global Ratings predicts global bond issuance will grow at its slowest pace in five years in 2027 due to rising interest rates and Middle East war uncertainties. S&P Global Ratings forecasts global bond issuance will grow by 2.7% in 2027, the slowest pace in five years, as higher interest rates and Middle East war…
S&P Global Ratings Forecast
S&P Global Ratings said global bond issuance will grow at its slowest pace in five years next year.
2027 Growth Rate
Global bond issuance is expected to rise by 2.7% in 2027, down from this year's 12.2% growth rate.
Key Factors
Higher interest rates and Middle East war uncertainties could curb issuers' appetite for borrowing.
2026 Market Size
Global bond issuance is expected to hit $11.7 trillion in 2026.
Hyperscaler Impact
Hyperscaler bond issuance nearing $300 billion in 2026, AI-related capex expected to top $1.3 trillion next year.
Market Challenges
Rising interest rates clash with massive capex funding needs, potentially testing investor and issuer nerve.
China's Role
China likely to remain a source of issuance growth due to declining sovereign bond yields.
The main idea
S&P Global Ratings forecasts global bond issuance will grow by 2.7% in 2027, the slowest pace in five years, as higher interest rates and Middle East war tensions reduce borrowing demand.
