Global Bond Issuance to Grow 2.7 Percent in 2027
S&P Global Ratings projects a significant slowdown in issuance growth as rising interest rates and geopolitical tensions persist.
Updated on Oct. 27, 2026 in Corporate Finance
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Global bond issuance is set to increase by 2.7 percent in 2027, marking a sharp decline from the 12.2 percent growth rate projected for 2026. The 2026 volume is expected to hit $11.7 trillion as issuers navigate high borrowing costs and global instability.
Why it matters
Rising interest rates and geopolitical uncertainty stemming from the Middle East are curbing the appetite for borrowing. Consequently, market participants are tempering expectations for debt expansion as corporations prioritize refinancing and governments manage rising defense and aging-related expenses.
S&P Global Ratings expects global bond issuance to hit $11.7 trillion in 2026, while hyperscaler bond issuance approaches $300 billion. Meanwhile, capital expenditure tied to AI is projected to exceed $1.3 trillion in 2027.
The players
S&P Global Ratings
This organization is a leading provider of independent credit ratings and benchmarks for global capital markets.
The details
Borrowing behavior is being reshaped by governments funding defense needs alongside private sector efforts to refinance maturing debt. While China is expected to remain a primary engine for issuance growth due to declining sovereign bond yields, hyperscaler debt issuance is anticipated to decelerate compared to previous years.
Timeline
2026: Global bond issuance is expected to reach $11.7 trillion.
2027: Global bond issuance growth is projected at 2.7 percent.
Market Dynamics
The projected slowdown in bond issuance mirrors broader historical shifts in monetary policy as high interest rates tighten financial conditions. This cycle follows the 2026 global bond issuance forecast by S&P Global Ratings, serving as a bellwether for how global debt markets adapt to ongoing geopolitical and structural economic pressures.
Retail and institutional investors should prepare for a landscape where debt expansion slows, potentially impacting yield strategies and portfolio allocations. Reduced issuance volume may influence the availability of new corporate bonds, shifting the focus toward refinancing existing debt holdings.
The takeaway
The projected deceleration in bond growth highlights a shift toward more conservative borrowing strategies amid global financial pressures. Investors and firms should monitor how declining sovereign bond yields in specific regions like China may create localized opportunities against a backdrop of global tightening.
Further reading
Find more analysis on debt markets in the Corporate Finance section.
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Given rising interest rates, is now a good time for individuals or businesses to take on debt?
