Global convertible issuance increases 34% in Q3 2026 despite rising rates
The convertible market navigated a shifting financing environment in Q3 2026, marked by higher borrowing costs and easing implied volatility. However, issuance remained strong with $66.1 billion raised across 79 deals, representing a 34% increase year over year. Year-to-date issuance reached $206.9 billion, already surpassing the $167.1 billion raised in all of 2025.
With deal count unchanged from Q3 2025, growth came entirely from larger transactions. Average deal size increased to $837 million from $625 million a year earlier, while net issuance climbed 45% to $33.4 billion.
New research: breaking down Q3 trends
In our latest convertibles issuance report, Numerix exploresthe market forces behind the quarter's activity, including shifting financing costs, stand-out transactions, deal structures, and regional trends.
Explore the infographic below for key findings from the report.
Beyond the headline issuance figures, various trends reveal how issuers and the broader convertible market responded to changing conditions in Q3. Below we provide a high-level view of these themes, with a deeper dive available in the report.
Higher rates widen convertibles' cost advantage
The Federal Reserve's September rate hike and rising Treasury yields increased financing costs, widening the coupon advantage of convertibles over traditional high-yield debt.
Meanwhile, implied volatilities eased and many bonds cheapened in the secondary market. Despite this reset, U.S. convertible performances remained ahead of the S&P 500 year to date through September 23.
Zero coupons become the majority structure
Zero-coupon deals accounted for more than half of Q3 issuance, with APAC driving the shift. In APAC, 28 of 31 deals priced at a 0% coupon.
APAC posts its largest quarter on record
While North America maintained its lead in global issuance, APAC posted a record quarter, raising $21.0 billion across 31 deals, driven in part by Taiwanese semiconductor and hardware issuers. EMEA activity moderated following a strong Q2.
Looking ahead to Q4
As we move further into Q4, elevated Treasury yields and ongoing capital needs are expected to continue supporting convertible issuance. Numerix expects broader participation from high-yield and lower-rated issuers, while AI infrastructure financing needs are likely to sustain activity among repeat issuers.
Access the full Q3 2026 convertible market report
Get a data-driven look at regional and sector activity, the quarter's largest deals, and the market forces shaping the Q4 outlook.
Download the report here: Global convertibles issuance: Q3 2026 key trends and insights
Frequently Asked Questions
Q1: How much did global convertible issuance grow in Q3 2026?
According to Numerix Q3 2026 data, global issuance reached $66.1 billion across 79 deals, up 34% year over year. Year-to-date issuance of $206.9 billion has already passed the $167.1 billion raised in all of 2025. Growth came despite the Federal Reserve’s September rate hike, which widened the coupon advantage of convertibles over traditional high-yield debt.
Q2: Did Q3 2026 convertible issuance growth come from more deals or larger deals?
Analysts often assume issuance growth means more issuers entered the market. According to Numerix, deal count was unchanged from Q3 2025, so the 34% increase came entirely from larger transactions. Average deal size rose to $837 million from $625 million a year earlier. Net issuance also climbed 45% to $33.4 billion.
Q3: Which structures and regions are driving global convertible issuance in 2026?
Teams benchmarking new issues need to know where structural change is concentrated. According to Numerix Q3 2026 data, zero-coupon deals made up more than half of issuance, led by APAC, where 28 of 31 deals priced at a 0% coupon. APAC raised a record $21.0 billion across 31 deals, helped by Taiwanese semiconductor and hardware issuers, while North America kept the global lead.
