A Closer Look At Equity Issuance

US equity issuance is poised to reach record absolute levels in 2026 but remains manageable when scaled against total market capitalization. Strong share buyback activity ensures a net reduction in corporate equity, suggesting issuance is not a significant headwind for the market.

Key Takeaways

• 1.Equity issuance (IPO and secondary) is expected to hit record highs in absolute terms, but remain within long-term historical ranges relative to total market size.
• 2.Share buybacks continue to outpace issuance, meaning the corporate sector is effectively reducing net equity.
• 3.IPO activity is a coincident market indicator, not a headwind to further equity market gains.

Table of Contents

• A closer look at equity issuance
• Picking up steam
• Still a net reduction in corporate equity
• IPO activity is a coincident indicator
• No impact from large IPOs
• Global asset class preferences definitions
• Appendix

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