The Korea Bank Research Institute (October 14, 2026) released a statement through its financial bulletin that the International Monetary Fund’s latest report warns of structural weaknesses facing the Asian corporate bond market and the associated risks to the overall financial system. The report emphasizes that most small‑and‑medium‑size enterprises—excluding large corporates—continue to struggle with issuing debt at rates above 20 % in terms of new issuance.
In its announcement, the IMF noted a sharp rise in cases where the average coupon rate on Asian corporate bonds falls below 20 %. This suggests that investors are restricting their exposure to credit risk, making capital raising more difficult and increasing the potential cost of issuing debt. The report also cautions that the structural fragility of the overall financial system may allow corporate bonds to carry relatively higher interest‑rate risk compared with large corporates.
The report further stresses concerns about the productivity slowdown facing the Asian economy. When new issuance rates are low, firms face higher long‑term financing costs, which can undermine capital formation and growth prospects. To address these challenges, the IMF proposes strengthening corporate‑bond management systems at the country level and providing policy support to improve new issuance rates.
Finally, through its warnings about the risks confronting the corporate bond market, the IMF aims to enhance transparency in financial markets and secure long‑term economic stability. This signals a policy direction that improves the financing environment for firms in Asia and enables global investors to recognize risks related to new issuance rates.