Global bond issuance is expected to grow by 2.7% in 2027, its slowest pace of growth in five years, as higher interest rates and uncertainty tied to the Middle East war could curb borrowing appetite, S&P Global Ratings said.
Global bond issuance outlook
In a note dated October 26, 2026, S&P forecast issuance growth of 12.2% for 2026 and said the total was expected to reach $11.7 trillion. Both figures are forecasts, not completed results.
Bond issuance has surged in recent years as governments have sought funding for needs including defense and aging populations, companies have refinanced maturing debt, and large technology firms have invested in artificial intelligence.
AI funding and investor demand
S&P said bond issuance by hyperscalers was nearing $300 billion in 2026 and forecast that AI-related capital expenditure would exceed $1.3 trillion in 2027. It expects hyperscaler issuance to increase next year, but at a slower pace.
The ratings agency said 2027 could test investors and issuers as rising interest rates meet large capital-spending needs. It also expects China to remain a source of issuance growth, helped by declining sovereign bond yields.
Corporate bond spreads have tightened as investor demand for sovereign and corporate debt has remained robust, S&P said.
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