Global Convertibles Issuance: Q1 2026 Key Trends and Insights

Robust Q1 issuance underscores continued momentum in global convertibles 

The global convertible securities market delivered a strong start to 2026, with issuance totaling $56.1 billion across 78 deals, marking a sharp increase relative to prior-year levels. This increase highlights sustained issuer demand for flexible, equity-linked financing, even amid a volatile macroeconomic environment. 

Convertibles also demonstrated resilience during the quarter. While equity markets declined, the ICE BofA U.S. Convertibles Index generated positive returns—reinforcing the asset class’s ability to balance downside protection with upside participation. 

Q1 2026 Highlights 

• $56.1B in global issuance across 78 deals, more than doubling Q1 2025 levels  
• Convertibles outperformed equities, returning 3.72%¹ versus a 4.35%² decline in the S&P 500 
• North America led issuance, while Asia-Pacific saw significant growth in both deal count and proceeds  
• Large-scale transactions dominated, with all top deals exceeding $1 billion  
• Mandatory convertibles gained traction, with increased use in strategic capital raises  

Key Market Themes 

Resilience in Volatile Markets 
Convertibles continued to demonstrate their defensive characteristics, outperforming broader equity markets during periods of volatility. The bond floor provided downside support, while embedded optionality preserved upside participation earlier in the quarter. 

APAC as a Growing Source of Issuance 
Asia-Pacific emerged as a key driver of growth, with increased issuance activity supported by improving market conditions and growing investor participation. The region continues to expand its role in the global convertibles landscape. 

Rise of Mandatory Convertibles 
Mandatory structures saw increased adoption in Q1, particularly in large, strategic transactions. These instruments are gaining traction as issuers seek equity-linked financing solutions that balance capital efficiency with delayed dilution. 

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FAQ: Convertibles Q1 2026 Report 

1. How did convertible issuance trend in Q1 2026? 
Global issuance reached $56.1 billion across 78 deals, representing a significant increase versus Q1 2025 and reflecting sustained market access for issuers. 

2. How did convertibles perform relative to equities? 
Convertibles outperformed equities, with the ICE BofA U.S. Convertibles Index returning approximately +3.72%¹ during the quarter, compared to a -4.35%² decline in the S&P 500. 

3. What were the primary drivers of issuance activity? 
Issuance was supported by steady investor demand, ongoing capital needs tied to AI and infrastructure investment, and favorable financing conditions relative to traditional debt. 

4. Which regions led issuance? 
North America remained the largest contributor, while Asia-Pacific experienced notable growth in both deal volume and proceeds. 

5. What is driving increased activity in Asia-Pacific? 
Regional growth reflects a combination of improving market conditions, supportive interest rate dynamics in Japan, and renewed issuance activity across key markets. 

6. Which sectors were most active? 
Issuance was led by technology, materials, industrials, and utilities, reflecting both innovation-driven and capital-intensive funding requirements. 

7. To what extent is AI influencing issuance? 
AI remains a key driver, particularly in large-scale transactions tied to data center expansion, semiconductors, and infrastructure, though activity is broadening across sectors. 

8. What explains the rise in mandatory convertibles? 
Mandatory convertibles have gained traction as issuers seek equity-linked financing structures that defer dilution while providing attractive income characteristics to investors. 

9. Were market conditions favorable for issuers? 
Conditions were generally supportive, with some transactions achieving relatively favorable terms, including lower coupons and higher conversion premiums. 

10. How are investor return profiles evolving? 
With tighter pricing in certain transactions, return generation is increasingly linked to volatility and secondary market performance rather than yield alone. 

11. What were the most notable deals in Q1 2026? 
The quarter was defined by large, strategic transactions, with all top deals exceeding $1 billion. Notably, Oracle Corporation issued a $5.0 billion mandatory convertible, the largest transaction of the quarter. 

12. What is the outlook for the convertibles market in the remainder of 2026? 
While market volatility may introduce variability in issuance levels, the overall environment supports continued activity driven by refinancing needs, strategic investment, and evolving deal structures. 

^{¹ Source: ICE Data Indices, LLC, ICE BofA U.S. Convertibles Index, total return, as of March 31, 2026. https://www.ice.com/indices} 

^{² Source: Equity index performance (Q1 2026): S&P 500 (via S&P Dow Jones Indices). https://www.spglobal.com/spdji/en/indices/equity/sp-500/}