Taiwan Ratings Sees Bond Market Edging Higher in 2026 as AI Demand Lifts Corporate Issuance

Taiwan Ratings expects Taiwan's economic momentum to continue in 2026, driving marginal growth in the bond market. Rising funding needs for AI server capacity and expansions of advanced semiconductor manufacturing are making technology leaders such as TSMC important drivers of corporate bond issuance. The forecast did not disclose the total amount of issuance.

Taiwan Ratings said in its latest assessment that corporate bond issuance is expected to increase slightly in 2026, mainly as technology companies continue investing in AI and advanced manufacturing capacity. By contrast, most banks and life insurers have already met their capital adequacy requirements, reducing their need to raise additional capital. Financial bond issuance could therefore decline, although no percentage change or amount has been disclosed.