The global high-yield bonds market size reached approximately USD 5.31 Trillion in 2024. The market is projected to grow at a CAGR of 4.30% between 2025 and 2034, reaching a value of around USD 8.09 Trillion by 2034.

The Corporate Bond Market report segments the industry into By Type Of Bonds (Investment-Grade Corporate Bond Funds, High-Yield Corporate Bond Funds, Sector-Specific Corporate Bond Funds), By Investor Type (Institutional Investors, Retail Investors), and By Geography (North America, Europe, Asia Pacific, South America, Middle East). Get historical data covering five years and forecasts for the next five years.

The Global Bond Market is Segmented by Type (Treasury Bonds, Municipal Bonds, Corporate Bonds, High-Yield Bonds, Mortgage-Backed Securities, and More), by Issuer (Public Sector Issuers, Private Sector Issuers), by Sectors (Energy and Utilities, Technology, Media and Telecom, Healthcare, Consumers, Industrial, Real Estate and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

High Yield Green Bonds Market Outlook

According to our latest research, the global high yield green bonds market size reached USD 142.3 billion in 2024, reflecting a robust expansion driven by increased environmental awareness and sustainable investment mandates. The market is poised to grow at a remarkable CAGR of 12.7% from 2025 to 2033, with the total market value forecasted to reach USD 418.6 billion by 2033. This surge is primarily fueled by the growing demand for green financing solutions that offer higher returns while supporting climate-friendly projects and infrastructure development worldwide.

One of the primary growth factors propelling the high yield green bonds market is the global shift towards sustainable finance and the integration of environmental, social, and governance (ESG) criteria into investment decision-making. Institutional and retail investors alike are increasingly seeking opportunities that not only generate attractive financial returns but also contribute positively to environmental objectives. The proliferation of international frameworks, such as the Green Bond Principles and the EU Green Bond Standard, has provided much-needed clarity and confidence for issuers and investors, resulting in a surge of green bond issuances across multiple sectors. This trend is further reinforced by mounting regulatory pressures and government incentives aimed at accelerating the transition to a low-carbon economy.

The high yield segment of the green bond market is witnessing particularly strong demand due to the convergence of two critical investment themes: sustainability and income generation. As traditional fixed-income markets experience yield compression, investors are increasingly turning to high yield green bonds as a way to enhance portfolio returns while maintaining a commitment to responsible investing. This has led to a broadening of the issuer base, with non-financial corporates, municipalities, and sovereigns all participating actively. The diversification of green bond structures and the inclusion of innovative use-of-proceeds categories—such as green buildings, clean transportation, and sustainable water management—are further expanding the market’s appeal to a wider range of investors.

Another important driver is the rapid technological advancements and cost reductions in renewable energy, energy efficiency, and other green sectors. These developments have made green projects more economically viable, encouraging both public and private sector entities to finance their sustainability initiatives through high yield green bonds. The alignment of corporate sustainability strategies with funding mechanisms has also contributed to the mainstreaming of green bonds, particularly among large multinational corporations and financial institutions. As a result, the market is experiencing a virtuous cycle where increased issuance is met with growing investor appetite, reinforcing the sector’s upward trajectory.

From a regional perspective, Europe continues to lead the high yield green bonds market, accounting for the largest share of global issuances. The region’s dominance is underpinned by progressive regulatory frameworks, ambitious climate targets, and strong support from both public and private stakeholders. North America is rapidly catching up, driven by heightened ESG integration among institutional investors and significant federal and state-level policy support. Meanwhile, the Asia Pacific region is emerging as a key growth engine, with countries such as China, Japan, and Australia ramping up their green finance activities to meet national sustainability goals. Latin America and the Middle East & Africa are also showing increasing participation, albeit from a lower base, as governments and corporates seek to tap into the benefits of green capital markets.

Bond Type Analysis

The high yield green bonds market is segmented by bond type into corporate, sovereign, municipal, and others, each playing a distinct role in the market’s evolution. &l

As of July 18, 2025, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United Kingdom had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

Corporate Bond Market Outlook

According to our latest research, the global corporate bond market size reached USD 13.2 trillion in 2024, reflecting the robust appetite for fixed-income securities among investors worldwide. The market is projected to grow at a CAGR of 6.1% from 2025 to 2033, reaching a forecasted value of USD 22.4 trillion by 2033. This growth trajectory is underpinned by increasing corporate financing needs, persistent low interest rate environments in key economies, and the ongoing diversification strategies of institutional investors seeking stable returns and risk mitigation.

One of the primary growth drivers for the corporate bond market is the rising demand for alternative investment vehicles among institutional investors. Pension funds, insurance companies, and sovereign wealth funds are increasingly allocating larger portions of their portfolios to corporate bonds, attracted by the relatively higher yields compared to government securities. In addition, the growing sophistication of credit risk assessment tools and enhanced market transparency have made corporate bonds more accessible and attractive to a broader range of investors. The expansion of emerging markets, where corporations are turning to bonds as a means of raising capital for expansion and innovation, is also contributing significantly to the overall market growth.

Another critical factor fueling the growth of the corporate bond market is the evolving regulatory landscape. Regulatory reforms, such as Basel III and Solvency II, have encouraged financial institutions to maintain higher capital buffers, prompting them to invest in liquid and high-quality assets like investment-grade corporate bonds. Moreover, the proliferation of sustainable finance initiatives has led to a surge in the issuance of green and social bonds by corporations aiming to align with environmental, social, and governance (ESG) criteria. This trend is not only expanding the market but also attracting a new class of investors focused on responsible investing.

Technological advancements are also playing a pivotal role in the transformation of the corporate bond market. The adoption of electronic trading platforms, blockchain-based settlement systems, and advanced data analytics has streamlined the issuance, trading, and settlement processes. These innovations have enhanced market liquidity, reduced transaction costs, and increased transparency, making corporate bonds more accessible to both institutional and retail investors. Furthermore, the rise of online platforms and fintech solutions is democratizing access to corporate bonds, enabling a broader investor base to participate in this dynamic market.

From a regional perspective, North America continues to dominate the corporate bond market owing to the presence of mature capital markets, a large base of institutional investors, and a favorable regulatory environment. However, Asia Pacific is rapidly emerging as a key growth engine, driven by economic expansion, financial market liberalization, and increasing corporate bond issuances in countries like China, Japan, and India. Europe also remains a significant market, supported by robust investor demand and the widespread adoption of ESG principles. Meanwhile, Latin America and the Middle East & Africa are witnessing gradual growth, fueled by infrastructure development and efforts to deepen local capital markets.

Type Analysis

The corporate bond market can be broadly segmented by type into investment grade and high yield bonds. Investment grade bonds, which are issued by corporations with strong credit ratings, constitute the largest segment due to their lower risk profile and stable returns. These bonds are particularly favored by risk-averse investors such as pension funds, insurance companies, and central banks. The demand for investment grade bonds has been further bolstered by regulatory requirements mandating higher allocations to high-quality assets, as well as the growing emphasis on

Graph and download economic data for 10-Year High Quality Market (HQM) Corporate Bond Par Yield (HQMCB10YRP) from Jan 1984 to Aug 2025 about 10-year, bonds, yield, corporate, interest rate, interest, rate, and USA.

Fixed Income Asset Management Market Outlook

The global fixed income asset management market size was valued at approximately USD 5.7 trillion in 2023 and is projected to grow to USD 9.3 trillion by 2032, expanding at a compound annual growth rate (CAGR) of 5.5% over the forecast period. The growth of this market is primarily driven by the increasing demand for stable and predictable returns in an uncertain economic environment.

One of the significant growth factors for the fixed income asset management market is the aging global population. As more individuals approach retirement age, the demand for fixed income investments that offer stable returns and lower risk compared to equities is increasing. Retirees and near-retirees often prioritize capital preservation and income generation, which fixed income products are well-suited to provide. This demographic trend is particularly prominent in developed countries but is also becoming more relevant in emerging markets as their populations age and accumulate wealth.

Another crucial growth driver is the rising interest rate environment. As central banks around the world shift towards tightening monetary policies to combat inflation, interest rates are gradually increasing. Higher interest rates make newly issued bonds more attractive to investors due to their higher yields. This situation creates opportunities for fixed income asset managers to attract new investments and cater to clients looking for better returns in a higher interest rate environment. Additionally, higher yields can enhance the overall performance of fixed income portfolios, making them more appealing to both institutional and retail investors.

The increasing complexity and diversity of fixed income products is also contributing to market growth. The fixed income market has evolved to include a wide range of instruments beyond traditional government and corporate bonds. Products such as mortgage-backed securities, municipal bonds, and various structured financial instruments offer different risk-return profiles and investment opportunities. This diversification allows asset managers to tailor portfolios to meet specific client needs and preferences, thereby attracting a broader investor base. The development of innovative fixed income products continues to drive growth in this market by expanding the range of investment options available.

In the realm of private equity, the PE Fund Management Fee plays a crucial role in shaping the investment landscape. These fees are typically charged by fund managers to cover the operational costs of managing the fund, including research, administration, and portfolio management. The structure of these fees can vary, often comprising a management fee based on the committed capital and a performance fee tied to the fund's returns. Understanding the intricacies of these fees is essential for investors, as they can significantly impact the net returns on their investments. As private equity continues to grow as an asset class, the transparency and justification of management fees are becoming increasingly important to investors seeking to maximize their returns while ensuring alignment of interests with fund managers.

From a regional perspective, North America remains the largest market for fixed income asset management, driven by the presence of a well-established financial industry, a large pool of institutional investors, and a high level of individual wealth. However, the Asia Pacific region is expected to exhibit the highest growth rate during the forecast period. Rapid economic growth, increasing financial literacy, and a burgeoning middle class are driving demand for fixed income investments in countries such as China and India. Additionally, regulatory reforms aimed at developing local bond markets and attracting foreign investment are further propelling the market in this region.

Asset Type Analysis

The fixed income asset management market can be categorized by asset type into government bonds, corporate bonds, municipal bonds, mortgage-backed securities, and others. Each of these asset types offers unique characteristics and appeals to different segments of investors, contributing to the overall growth and diversification of the market.

Government bonds are one of the most significant segments in the fixed income market. Issued by national governments, these bonds are considered low-risk investments due to the backing of the issuing g

Global Bond is segmented by Application (Investment, Hedging, Corporate Financing, Infrastructure, International Trade), Type (Government, Corporate, Municipal, High-Yield, Treasury) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)

The U.S. dollar was the currency most commonly used for deals on the international debt capital market in the fourth quarter of 2024. At that time, the value of deals in that currency was 639 billion U.S. dollars. What is debt capital market? The debt market is the part of the capital market on which fixed-interest securities are traded. These securities include, for example, government, municipal, corporate or mortgage bonds. It allows the companies and governments to raise capital through issuance of debt securities. In case a company or a government decides to collect additional money on debt capital market, it issues debt securities and sells them to investors. Depending on financial situation of the company issued bonds can obtain different ratings. The better the company is perceived in the market, the lower interest rates it has to pay for raised capital. Other ways of raising capital Some companies can access money via venture capital or private equity funding, where money comes from high net worth individuals, investment funds, banks or other financial institutions. For larger and well-established companies going public can be an option and raising money among investors. This process is called initial public offering (IPO).

View data of the effective yield of an index of non-investment grade publically issued corporate debt in the U.S.

Global bond market was valued at USD 141.34 Trillion in 2024 and is expected to reach USD 166.81 Trillion by 2030 with a CAGR of 2.8% during the forecast period.

The yield on US 30 Year Bond Yield rose to 4.76% on September 26, 2025, marking a 0.01 percentage point increase from the previous session. Over the past month, the yield has fallen by 0.16 points, though it remains 0.66 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United States 30 Year Bond Yield - values, historical data, forecasts and news - updated on September of 2025.

Chinese government bond yields decreased between April 2024 and April 2025. For instance, the 1-year bond yield went from 1.72 percent to 1.42 percent, and the 30-year yield dropped from 2.33 percent to 1.87 percent. The decrease in yields was consistent across both short- and long-term maturities during this period.

The global bond trading platform market is experiencing robust growth, driven by increasing demand for fixed-income securities and technological advancements enhancing trading efficiency. Our analysis indicates a market size of approximately $15 billion in 2025, projected to grow at a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033. This growth is fueled by several key factors, including the rising adoption of electronic trading platforms, the increasing complexity of bond markets requiring sophisticated analytical tools, and the growing need for regulatory compliance solutions integrated within trading platforms. Furthermore, the expansion of the global investor base, particularly among institutional investors and high-net-worth individuals, is contributing significantly to market expansion. The competitive landscape is characterized by a mix of established players like Charles Schwab and smaller, specialized firms catering to niche markets. The market segmentation is likely to evolve with the rise of specialized platforms focusing on specific bond types (e.g., government bonds, corporate bonds, municipal bonds), offering tailored functionalities and analytics. While regulatory hurdles and cybersecurity concerns represent potential restraints, innovative features such as AI-driven trade execution and enhanced risk management tools are anticipated to drive future market growth. The geographical distribution is expected to be geographically diverse, with significant contributions from North America and Europe, followed by the Asia-Pacific region experiencing accelerated growth due to increasing financial market sophistication. This presents considerable opportunities for both established and emerging players to capitalize on the expanding market.

Global Fixed Income Asset Management market size is expected to reach $113391.7 billion by 2029 at 9.8%, segmented as by government bonds, treasury bonds, sovereign bonds, inflation-protected bonds, foreign government bonds

Israel Market Capitalization: TASE: Annual: Listed Securities: Fixed Income Market: Bonds: Corporate data was reported at 94.800 USD bn in 2017. This records an increase from the previous number of 78.200 USD bn for 2016. Israel Market Capitalization: TASE: Annual: Listed Securities: Fixed Income Market: Bonds: Corporate data is updated yearly, averaging 27.178 USD bn from Dec 1996 (Median) to 2017, with 22 observations. The data reached an all-time high of 94.800 USD bn in 2017 and a record low of 2.549 USD bn in 2000. Israel Market Capitalization: TASE: Annual: Listed Securities: Fixed Income Market: Bonds: Corporate data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z003: Tel Aviv Stock Exchange: Market Capitalization.

As of July 22, 2025, the yield for a ten-year U.S. government bond was 4.38 percent, while the yield for a two-year bond was 3.88 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.

The Fixed Income ETF market, encompassing a diverse range of investment strategies, experienced significant growth between 2019 and 2024. While precise figures are unavailable, industry trends suggest a substantial market size in 2025, likely exceeding $1 trillion, driven by increasing investor demand for diversification, lower expense ratios compared to actively managed funds, and the ease of access offered by exchange-traded structures. Major players like Vanguard, BlackRock, and PIMCO dominate the market share, benefiting from their established brand reputation, extensive product offerings, and robust distribution networks. The market's growth trajectory is projected to continue throughout the forecast period (2025-2033), though at a potentially moderated CAGR compared to previous years, influenced by fluctuating interest rates and macroeconomic uncertainties. The increasing complexity of the global financial landscape, coupled with growing regulatory scrutiny, could present challenges for market expansion. Segmentation within the market is substantial, ranging from government bonds to corporate debt, emerging markets, and specialized strategies like high-yield or municipal bonds. Growth drivers include the pursuit of yield in a low-interest-rate environment, the appeal of passive investment strategies for retail and institutional investors, and the rising adoption of ETFs within retirement plans and other investment vehicles. However, restraints include potential market volatility due to economic downturns, the impact of rising inflation on fixed-income returns, and competition from other investment products like mutual funds. Regional variations are expected, with North America and Europe continuing to hold significant market share, although Asia-Pacific and other emerging markets are anticipated to witness accelerated growth in the coming years driven by increasing financial market sophistication and infrastructure development. This growth is projected to be fueled by an increasing number of sophisticated investors seeking efficient access to global fixed-income markets. The market’s future evolution hinges on factors such as interest rate changes, global economic stability, and the continuing evolution of investor preferences towards passive investment solutions.

The yield on US 10 Year Note Bond Yield rose to 4.18% on September 26, 2025, marking a 0.01 percentage point increase from the previous session. Over the past month, the yield has fallen by 0.06 points, though it remains 0.42 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. US 10 Year Treasury Bond Note Yield - values, historical data, forecasts and news - updated on September of 2025.