Fundraising in a Volatile World: Strategies for Institutional Issuers in 2025

After a subdued Easter break, markets returned with heightened volatility: gold prices hit an all-time high, the US dollar weakened sharply, and major earnings reports exposed underlying fragilities. For institutional issuers — sovereigns, development banks, corporates — the message is unmistakable: market turbulence is no longer background noise; it must actively inform capital markets strategies.

At Quarter Century, we believe successful issuers adapt to the environment — not the other way around. Here’s how institutions can navigate today’s unpredictable landscape.

Why Macro Volatility Matters for Issuers

Risk aversion directly influences capital flows.
Periods of volatility increase investors’ preference for safe-haven assets and reduce appetite for new issuance — especially from emerging markets or higher-yield names. Geopolitical risks, monetary policy uncertainty, and fluctuating exchange rates complicate funding plans and can drive pricing volatility at issuance.

For issuers, understanding investor sentiment isn’t optional. It’s mission-critical.

Adjusting Issuance Strategy

Given today’s conditions, institutional issuers should focus on:

• Opportunistic Timing: Issuance windows are becoming narrower. Flexibility and speed are vital to take advantage of brief risk-on periods.
• Instrument Diversification: Consider diversifying across currencies, tenors, and structures (e.g., sukuk, ESG-linked bonds) to access broader pools of liquidity.
• Realistic Pricing Expectations: Investors are demanding higher risk premiums. A pragmatic approach to pricing can increase execution certainty.

Proactive engagement with underwriters and advisors — rather than a passive calendar approach — will differentiate successful issuers this year.

Strengthening Investor Relations

In a risk-off environment, maintaining and expanding the investor base is critical.
Issuers should prioritize:

• Transparent Communication: Provide timely, credible updates on macroeconomic policy, governance, and credit fundamentals.
• Targeted Outreach: Tailor roadshows and updates to core and opportunistic investors, particularly those seeking to rebalance amid changing market dynamics.
• Crisis Readiness: Be prepared to address concerns candidly if market sentiment worsens.

Institutions that maintain active dialogue with investors — even outside of issuance windows — will command greater loyalty.

Opportunities Amid Market Disruption

While volatility poses challenges, it also opens doors:

• ESG-related issuance remains resilient, offering opportunities for sustainability-focused issuers.
• Demand for infrastructure, energy transition, and digital economy investments continues to grow, attracting strategic investors even amid macro headwinds.

Institutions aligning their funding programs with long-term global themes will access deeper and more durable pools of capital.

Final Thoughts: Strategic Agility Is Essential

Market conditions in 2025 demand agility, transparency, and strategic foresight from institutional issuers. Those who can combine disciplined preparation with opportunistic execution will not just weather the turbulence — they will enhance their positioning for the future.

At Quarter Century, we partner with institutions globally to optimize funding strategies, strengthen investor relationships, and navigate complex markets with confidence.