Bond Investments by Japanese abroad decreased by 331.60 billion yen in the week ending July 26 of 2025. This dataset provides the latest reported value for - Japan Foreign Bond Investment - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

As of December 2024, Japan held United States treasury securities totaling about 1.06 trillion U.S. dollars. Foreign holders of United States treasury debt According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 8.5 trillion U.S. dollars in U.S. treasury securities as of December 2024. Of the total held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 759 billion U.S. dollars in U.S. securities. The U.S. public debt In 2023, the United States had a total public national debt of 33.2 trillion U.S. dollars, an amount that has been rising steadily, particularly since 2008. In 2023, the total interest expense on debt held by the public of the United States reached 678 billion U.S. dollars, while 197 billion U.S. dollars in interest expense were intra governmental debt holdings. Total outlays of the U.S. government were 6.1 trillion U.S. dollars in 2023. By 2029, spending is projected to reach 8.3 trillion U.S. dollars.

PIA: Sovereign Bonds: Total: Disposition: U.S.A. data was reported at 9,742.889 JPY bn in May 2018. This records an increase from the previous number of 7,800.298 JPY bn for Apr 2018. PIA: Sovereign Bonds: Total: Disposition: U.S.A. data is updated monthly, averaging 9,788.809 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 15,927.221 JPY bn in Jan 2016 and a record low of 5,606.610 JPY bn in Jul 2017. PIA: Sovereign Bonds: Total: Disposition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

In June 2025, the average yield on ten-year government bonds in the United States was **** percent. This was the ******* of the selected developed economies considered in this statistic. Bonds and yields – additional information The bond yield indicates the level of return that the investor can expect from a given type of bond. The government of Italy, for instance, offered the investors **** percent yield on ten-year government bonds for borrowing their money in June 2025. In the United States, government needs are also financed by selling various debt instruments such as Treasury bills, notes, bonds and savings bonds to investors. The largest holders of U.S. debt are the Federal Reserve and Government accounts in the United States. The major foreign holders of the United States treasury securities are Japan, Mainland China, and the United Kingdom.

Japan PIA: Sovereign Bonds: Total: Acquisition: U.S.A. data was reported at 7,694.767 JPY bn in May 2018. This records a decrease from the previous number of 8,039.391 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Total: Acquisition: U.S.A. data is updated monthly, averaging 10,250.917 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 15,507.660 JPY bn in Sep 2014 and a record low of 5,268.639 JPY bn in Feb 2014. Japan PIA: Sovereign Bonds: Total: Acquisition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

As of March 2025, the Bank of Japan held around ** percent of outstanding Japanese Government Bonds (JGBs). While ******************** held the largest share of JGBs, ***** accounted for almost ** percent of JGB holders.

Japan PIA: Sovereign Bonds: Total: Net: U.S.A. data was reported at -2,048.122 JPY bn in May 2018. This records a decrease from the previous number of 239.092 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Total: Net: U.S.A. data is updated monthly, averaging 484.173 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 4,839.864 JPY bn in Mar 2016 and a record low of -3,604.158 JPY bn in Apr 2017. Japan PIA: Sovereign Bonds: Total: Net: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6. Not further historical data available from source at the moment.

Japan PIA: Sovereign Bonds: Short-term (ST): Acquisition: U.S.A. data was reported at 1,501.382 JPY bn in May 2018. This records an increase from the previous number of 1,497.758 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Short-term (ST): Acquisition: U.S.A. data is updated monthly, averaging 781.304 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 1,711.436 JPY bn in Mar 2018 and a record low of 367.393 JPY bn in Mar 2014. Japan PIA: Sovereign Bonds: Short-term (ST): Acquisition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

In January 2020, prior to the onset of the global coronavirus (COVID-19) pandemic, three of the seven largest economies by GDP had negative yields for two-year government bonds (Japan, Germany and France). With the onset of the pandemic, two-year bond yields in these countries actually rose slightly - in contrast to the other major economies, where yields fell over this period. As of December 2024, yields for two-year government bonds exhibited fluctuations across all countries. Notably, Japan showed a slight upward trend, while China experienced a modest decline.Negative yields assume that investors lack confidence in economic growth, meaning many investments (such as stocks) may lose value. Therefore, it is preferable to take a small loss on government debt that carries almost no risk to the investor, than risk a larger loss on other investments. As both the yen and euro are considered very safe assets, Japanese, German and French bonds were already being held by many investors prior to the pandemic as a hedge against economic downturn. Therefore, with the announcement of fiscal responses to the pandemic by many governments around March 2020, the value of these assets rose as confidence increased (slightly) that the worst case may be avoided. At the same time, yields on bonds with a higher return fell, as investors sought out investments with a higher return that were still considered safe.

The value of U.S. Treasury securities held by residents of Russia amounted to ** million U.S. dollars in March 2025, marking a stark contrast to ***** billion U.S. dollars held in January 2020. The lowest over the period under consideration was recorded in November 2023 at ** million U.S. dollars. Furthermore, in March 2020, the figure plummeted to **** billion U.S. dollars, down from **** billion U.S. dollars one month prior. Russia’s holdings of U.S. treasury securities have decreased since 2014 following the Western sanctions over the annexation of Crimea and have further dropped in 2022 after more restrictions were imposed over the war in Ukraine. What are U.S. treasury holdings? U.S. treasury holdings are government debt instruments that contribute to the funding of various government projects in the country. The U.S. Department of Treasury allows individuals and organizations to invest in treasury notes, bills, and bonds, which are the main three types of securities. Just under half of the outstanding ** trillion U.S. dollars as of May 2024 were in the form of treasury notes. The notes have varying maturities and coupon payment frequencies, which are different from the maturity periods of treasury bills and bonds. Main foreign holders of U.S. treasury securities Foreign holdings of U.S. treasury debt amounted to ***** trillion U.S. dollars as of January 2024. Japan and China held the largest portions, with China possessing ***** billion U.S. dollars in U.S. securities. Additionally, other significant foreign holders included oil exporting countries and Caribbean banking centers.

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Fixed Income Assets Management Market Size 2025-2029

The fixed income assets management market size is forecast to increase by USD 9.16 tr at a CAGR of 6.3% between 2024 and 2029.

The market is experiencing significant growth, driven by increasing investor interest in fixed income securities as a hedge against market volatility. A key trend in this market is the expansion of bond Exchange-Traded Funds (ETFs), which offer investors liquidity, diversification, and cost savings. However, this market is not without risks. Transactions in fixed income assets involve complexities such as credit risk, interest rate risk, and liquidity risk, which require sophisticated risk management strategies. As global investors seek to capitalize on market opportunities and navigate these challenges effectively, they must stay informed of regulatory changes, market trends, and technological advancements. Companies that can provide innovative solutions for managing fixed income risks and optimizing returns will be well-positioned to succeed in this dynamic market.

What will be the Size of the Fixed Income Assets Management Market during the forecast period?

Request Free SampleThe fixed income assets market in the United States continues to be an essential component of investment portfolios for various official institutions and individual investors. With an expansive market size and growth, fixed income securities encompass various debt instruments, including corporate bonds and government treasuries. Interest rate fluctuations significantly impact this market, influencing investment decisions and affecting the returns from interest payments on these securities. Fixed income Exchange-Traded Funds (ETFs) and index managers have gained popularity due to their cost-effective and diversified investment options. However, the credit market volatility and associated default risk pose challenges for investors. In pursuit of financial goals, investors often choose fixed income funds over equities for their stable dividend income and tax savings benefits. Market risk and investors' risk tolerance are crucial factors in managing fixed income assets. Economic uncertainty and interest rate fluctuations necessitate active management by asset managers, hedge funds, and mutual funds. The fund maturity and investors' financial goals influence the choice between various fixed income securities, such as treasuries and loans. Despite the challenges, the market's direction remains positive, driven by the continuous demand for income-generating investments.

How is this Fixed Income Assets Management Industry segmented?

The fixed income assets management industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD tr' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeCoreAlternativeEnd-userEnterprisesIndividualsGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaSouth AmericaMiddle East and Africa

By Type Insights

The core segment is estimated to witness significant growth during the forecast period.The fixed income asset management market encompasses a diverse range of investment vehicles, including index investing, pension funds, official institutions, mutual funds, investment advisory services, and hedge funds. This asset class caters to income holders with varying risk tolerances, offering securities such as municipal bonds, government bonds, and high yield bonds through asset management firms. Institutional investors, insurance companies, and corporations also play significant roles in this sector. Fixed income securities, including Treasuries, municipal bonds, corporate bonds, and debt securities, provide regular interest payments and can offer tax savings, making them attractive for investors with financial goals. However, liquidity issues and credit market volatility can pose challenges. The Federal Reserve's interest rate decisions and economic uncertainty also impact the fixed income market. Asset management firms employ various strategies, such as the core fixed income (CFI) strategy, which invests in a mix of investment-grade fixed-income securities. CFI strategies aim to deliver consistent performance by carefully managing portfolios, considering issuer creditworthiness, maturity, and jurisdiction. Fixed income funds, including government bonds and corporate bonds, offer lower market risk compared to equities. Investors can choose from various investment vehicles, including mutual funds, ETFs, and index funds managed by active managers or index managers. Fixed income ETFs, in particular, provide investors with the benefits of ETFs, such as liquidity and transparency, while offering exposure to the fixed income market. Despite market risks and liquidity issues, the fixed income asset management market continues to be

Carbon-Smart Municipal Bond Market Outlook

According to our latest research, the global carbon-smart municipal bond market size reached USD 152.4 billion in 2024, reflecting the increasing prioritization of sustainable infrastructure and climate-resilient urban development. The market is expected to exhibit a robust CAGR of 10.7% from 2025 to 2033, reaching a forecasted value of USD 384.6 billion by 2033. This remarkable growth trajectory is driven by the rising demand for green and social bonds, regulatory incentives, and the urgent need for municipalities to address climate change through financing mechanisms that support decarbonization and sustainability goals. The carbon-smart municipal bond market is rapidly evolving, with strong momentum across developed and emerging economies alike, as governments and investors increasingly align their strategies with environmental, social, and governance (ESG) objectives.

One of the primary growth factors for the carbon-smart municipal bond market is the mounting pressure on local and state governments to address climate change and improve urban resilience. As global awareness of environmental risks intensifies, municipalities are under increasing scrutiny to reduce their carbon footprints and invest in sustainable infrastructure. This has led to a surge in the issuance of green and social bonds, which are specifically earmarked for projects that deliver measurable environmental and social benefits. These financial instruments enable cities and local agencies to access capital for renewable energy projects, sustainable transportation systems, and eco-friendly water and waste management solutions, while demonstrating their commitment to sustainability. The proliferation of sustainability-linked bond frameworks and third-party verification standards has further bolstered investor confidence, making carbon-smart municipal bonds an attractive option for both issuers and buyers.

Another significant driver of market expansion is the evolving regulatory landscape and the introduction of favorable policies designed to incentivize sustainable finance. Policymakers in major economies such as the United States, the European Union, and parts of Asia Pacific are implementing tax incentives, subsidies, and mandatory disclosure requirements that encourage the adoption of green and social bonds. These regulations not only facilitate greater transparency and accountability in the use of bond proceeds but also catalyze innovation in project financing. The emergence of standardized taxonomies and reporting frameworks, such as the EU Green Bond Standard and the Climate Bonds Initiative, is helping to harmonize market practices and reduce perceived risks for investors. As a result, institutional investors, including pension funds and insurance companies, are increasingly allocating capital to carbon-smart municipal bonds as part of their ESG investment strategies.

The growing appetite for sustainable investment products among retail and institutional investors is also fueling the expansion of the carbon-smart municipal bond market. Environmental, social, and governance considerations have become integral to investment decisions, with investors actively seeking opportunities to align their portfolios with climate-positive outcomes. Municipal bonds that finance low-carbon infrastructure and social impact projects offer a compelling value proposition, combining stable returns with positive environmental and social externalities. This trend is further amplified by the proliferation of green bond funds and ESG-focused investment vehicles, which channel capital into projects that support the transition to a low-carbon economy. As investor demand continues to outpace supply, municipalities are incentivized to innovate and diversify their bond offerings, driving further growth and sophistication in the market.

From a regional perspective, North America and Europe currently dominate the carbon-smart municipal bond market, accounting for the majority of issuances and investments. The United States remains the single largest market, supported by a mature municipal bond infrastructure and proactive climate policy at the state and local levels. Europe, meanwhile, is witnessing rapid growth, driven by the European Union’s Green Deal and ambitious emissions reduction targets. Asia Pacific is emerging as a key growth region, with countries like China, Japan, and Australia ramping up their green bond programs and sustainable infrastructure investments. Latin America and t

Japan PIA: Sovereign Bonds: Long-term (LT): Acquisition: U.S.A. data was reported at 6,193.385 JPY bn in May 2018. This records a decrease from the previous number of 6,541.633 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Long-term (LT): Acquisition: U.S.A. data is updated monthly, averaging 9,770.181 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 15,056.296 JPY bn in Sep 2014 and a record low of 3,986.568 JPY bn in Dec 2017. Japan PIA: Sovereign Bonds: Long-term (LT): Acquisition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

Japan PIA: Sovereign Bonds: Short-term (ST): Disposition: U.S.A. data was reported at 1,445.857 JPY bn in May 2018. This records an increase from the previous number of 1,430.269 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Short-term (ST): Disposition: U.S.A. data is updated monthly, averaging 743.647 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 1,502.361 JPY bn in Mar 2016 and a record low of 359.238 JPY bn in Jan 2014. Japan PIA: Sovereign Bonds: Short-term (ST): Disposition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

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Impact Investing Market Size 2025-2029

The impact investing market size is forecast to increase by USD 1312.9 billion, at a CAGR of 26.8% between 2024 and 2029.

The market is experiencing significant growth, driven by heightened awareness of social and environmental challenges that require innovative and sustainable solutions. This trend is particularly prominent among the millennial demographic, who are increasingly prioritizing social and environmental impact in their investment decisions. However, the market faces challenges, including a limited understanding of impact investing among investors and the general public. This lack of knowledge hinders the growth of the market and presents an opportunity for education and awareness campaigns. Additionally, the complexities of measuring and reporting impact data can create challenges for investors seeking to evaluate the effectiveness of their investments.
To capitalize on the market's potential, companies must focus on providing transparency and clarity around impact metrics, while also investing in education and awareness initiatives to expand the reach and understanding of impact investing. By addressing these challenges, market participants can effectively navigate the landscape and position themselves as leaders in this rapidly evolving market.

What will be the Size of the Impact Investing Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the convergence of various sectors and investment strategies. Water security investments, renewable energy, and community development finance are among the sectors experiencing significant activity. Blended finance, sustainable business models, and green bonds are increasingly popular approaches, as investors seek to maximize social and environmental impact while generating financial returns. Economic empowerment and financial inclusion are key focus areas, with pay-for-success contracts and venture philanthropy gaining traction. Impact investing platforms, impact reporting standards, and job creation are essential components of this dynamic market. Sustainable agriculture investments, climate finance, and responsible investing are also integral parts of the landscape.

Philanthropic capital, social impact measurement, and impact investing education are crucial for fostering growth and ensuring the long-term success of impact investing strategies. Investment due diligence, affordable housing, private equity ,public-private partnerships, social impact bonds, community engagement, and impact assessment frameworks are essential elements of the investment process. The continuous unfolding of market activities and evolving patterns underscores the importance of staying informed and adaptable in this ever-changing landscape.

How is this Impact Investing Industry segmented?

The impact investing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Institutional investor
  Individual investor
  Others


Sector

  Education
  Agriculture
  Healthcare
  Energy
  Others


Asset Class

  Equity
  Fixed Income
  Multi-asset
  Alternatives


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

.

By Type Insights

The institutional investor segment is estimated to witness significant growth during the forecast period.

Institutional investors are significantly increasing their presence in the market. These investors, which include financial companies and institutions managing large funds on behalf of pension funds, insurance companies, and sovereign wealth funds, are increasingly recognizing the potential of impact investments to generate both financial returns and social or environmental benefits. One prominent example is the Calvert Foundation, which manages a community investment note program. Through this program, investors can allocate funds towards initiatives in areas such as affordable housing, microfinance, and community development. Morgan Stanley is another major player, having made substantial investments in impact projects in 2023 and 2024.

Capacity building, renewable energy investments, community development finance, and triple bottom line considerations are key aspects of impact investing strategies. Clean technology investments, climate finance, responsible investing, water security investments, and blended finance are also integral components. Impact investing platforms, impact reporting standards, job creation, sustainable busines

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ETF Market Size 2025-2029

The ETF market size is forecast to increase by USD 17.94 billion at a CAGR of 20.2% between 2024 and 2029.

The market continues to experience robust growth, with increasing institutional adoption and investor preference for cost-effective, diversified investment solutions. One of the key drivers propelling this market forward is the expansion of bond ETFs, blockchains which now account for over one-third of the total assets under management. This trend is expected to persist, as fixed income securities offer attractive yields in the current low-interest-rate environment. However, the market is not without its challenges. A significant concern is the potential for transaction risks, particularly in illiquid securities. This risk can lead to price discrepancies between the ETF's net asset value and its market price, potentially resulting in losses for investors.
Additionally, market volatility and sudden price movements can exacerbate these risks, making it crucial for market participants to closely monitor market conditions and adjust their strategies accordingly. Companies seeking to capitalize on the growth opportunities in the market while mitigating transaction risks may consider focusing on liquid securities and implementing robust risk management strategies.

What will be the Size of the ETF Market during the forecast period?

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The exchange-traded fund (ETF) market continues to evolve, integrating advanced technologies and applications across various sectors. Machine learning algorithms enhance the investment process, enabling more precise index construction in fixed income ETFs. Currency ETFs leverage technology to offer real-time exposure to foreign exchange markets. Small businesses benefit from scalability and affordability, with increasing numbers turning to ETFs for diversified investment opportunities. Service providers and financial institutions collaborate to ensure financial market stability, offering innovative solutions for passive investing strategies, including index funds and index mutual funds.
The integration of artificial intelligence and blockchain technology further enhances ETF offerings, reducing transaction costs and improving security. The ongoing unfolding of market activities reveals evolving patterns in trade finance, international trade, and asset management. ETFs continue to adapt, providing investors with efficient and cost-effective investment vehicles.

How is this ETF Industry segmented?

The etf industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Fixed income ETF
  Equity ETF
  Commodity ETF
  Real estate ETF
  Others


Product Type

  Large cap ETFs
  Mega cap ETFs
  Mid cap ETFs
  Small cap ETFs


End-User

  Retail Investors
  Institutional Investors


Investment Type

  Active
  Passive


Distribution Channel

  Brokerage Platforms
  Direct Sales


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Switzerland
    The Netherlands
    UK


  Middle East and Africa

    UAE


  APAC

    China
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The fixed income etf segment is estimated to witness significant growth during the forecast period.

In the dynamic securities markets of 2024, the fixed income Exchange-traded fund (ETF) emerged as a leading investment choice. This type of ETF, which invests in various fixed-income securities like corporate, municipal, and treasury bonds, is traded on a centralized stock exchange. In contrast, most corporate bonds are sold through bond brokers, limiting bond buyers' exposure to the stock exchange. Fixed income ETFs, however, provide extensive exposure, enabling investors to participate in the stock exchange's activity. These ETFs employ various technologies, such as Optical Character Recognition and Machine Learning, to ensure efficient trade processing and risk management.

Additionally, the integration of Blockchain technology enhances security and transparency. Fixed income ETFs cater to diverse investor needs, including small businesses seeking scalability and financial institutions aiming for financial market stability. The market offers various categories, such as Government Bond ETFs, which invest in government securities, and Currency ETFs, which provide exposure to foreign currencies. Furthermore, Real Estate ETFs, Commodity ETFs, and Alternative Trading Funds expand the investment universe. Service providers play a crucial role in facilitating these investment solutions, ensuring affordability through passive investing strategies and competitive transaction costs. Trade agreements and internati

Government bond spreads as of April 15, 2025, varied widely among the largest economies when compared to German Bunds and U.S. Treasury notes. The United Kingdom's bond spread was the higest against both, with ***** basis points (bps) over Germany and **** bps over the U.S. In contrast, China and Japan display negative spreads, with Japan having the lowest spread at ****** bps against U.S. Treasuries. Italy, the United Kingdom, and Canada showed moderate spreads. Positive bond spreads indicate that a country’s government bonds have higher yields compared to the benchmark bonds - in this case, the German Bunds and U.S. Treasury notes. Higher spreads often signal perceived higher risk or economic uncertainty, as investors demand greater returns for holding these bonds. expectations. Conversely, negative spreads mean that these bonds offer lower yields than the benchmark. Negative spreads often indicate strong investor confidence, safe-haven status, or lower inflation expectations, as investors are willing to accept lower returns for the perceived stability of these bonds.

Japan PIA: Sovereign Bonds: Long-term (LT): Disposition: U.S.A. data was reported at 8,297.032 JPY bn in May 2018. This records an increase from the previous number of 6,370.029 JPY bn for Apr 2018. Japan PIA: Sovereign Bonds: Long-term (LT): Disposition: U.S.A. data is updated monthly, averaging 8,982.176 JPY bn from Jan 2014 (Median) to May 2018, with 53 observations. The data reached an all-time high of 14,920.292 JPY bn in Jan 2016 and a record low of 4,462.686 JPY bn in Dec 2017. Japan PIA: Sovereign Bonds: Long-term (LT): Disposition: U.S.A. data remains active status in CEIC and is reported by Bank of Japan. The data is categorized under Global Database’s Japan – Table JP.O019: Portfolio Investment Assets (PIA) by Country Breakdown of Sovereign Bonds: BPM6.

As of December 2024, all United Kingdom government debt securities were returning positive yields, regardless of maturity. This places the yield of both UK short term bonds and long term bonds above that of major countries like Germany, France and Japan, but lower than the United States. What are government bonds? Government bonds are debt instruments where a certain amount of money is given to the issuer, in exchange for regular payments of interest over a fixed period. At the end of this period the issuer then returns the amount in full. Bonds differ from a regular loan through how they can be traded on financial markets once issued. This ability to trade bonds makes it more complex to measure the return investors receive from bonds, as the price they buy a bond for on the market may differ from the price the same bond was initially issued at. The yield is therefore calculated as what investors can expect to receive based on current market prices paid for the bond, not the value it was issued at. In total, UK government debt amounted to over 2.4 trillion British pounds in 2023 – with the majority being comprised of different types of UK government bonds. Why are inverted yield curves important? UK government bond yields over recent years have taken on a typical shape, with short term bonds having a lower yield than bonds with a maturity of 10 to 20 years. The higher yield of longer-term bonds compensates investors for the higher level of uncertainty in the future. However, if investors are sufficiently worried about both a short term economic decline, and low long term growth, they may prefer to purchase short term bonds in order to secure assets with regular interest payments in the here and now (as opposed to shares, which can lose a lot of value in a short time). This can lead to an inverted yield curve, where shorter term debt has a higher yield. Inverted yield curves are generally seen as a reliable indicator of a recession, with inverted yields occurring before most recent U.S. recessions. The major exception to this is the recession from the coronavirus pandemic – but even then, U.S. yield curves came perilously close to being inverted in mid-2019.

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Structured Finance Market Size 2025-2029

The structured finance market size is forecast to increase by USD 1,128.5 billion at a CAGR of 11.9% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for alternative investment products and the rising popularity of Environmental, Social, and Governance (ESG)-linked structured finance solutions. This trend is being fueled by investors' growing appetite for yield and risk diversification, as well as their increasing focus on sustainability and ethical investing. Cryptocurrency wallets and tokenized assets enable gamers to monetize their virtual assets and participate in decentralized applications (dApps) built on Ethereum blockchains. However, the market's growth potential is tempered by several challenges. The insurance industry is one sector exploring the potential of DeFi technology providers. Regulatory hurdles, such as the implementation of new rules and guidelines, impact adoption and increase the cost of doing business. Supply chain inconsistencies and the complexity of structured finance products also pose significant challenges, requiring market participants to invest in advanced technology and expertise to manage risk and ensure compliance.
Despite these challenges, there are ample opportunities for companies to capitalize on the market's growth. By focusing on innovation, regulatory compliance, and risk management, structured finance providers can differentiate themselves and capture market share. Additionally, collaboration with technology partners and investment in digital transformation can help streamline operations and improve efficiency, enabling companies to better serve their clients and meet their evolving needs. Overall, the market offers significant opportunities for growth, but also requires a strategic and proactive approach to navigate the complex regulatory landscape and address the challenges of supply chain inconsistencies and product complexity.

What will be the Size of the Structured Finance Market during the forecast period?

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In the market, stress testing and sensitivity analysis are crucial tools for assessing market liquidity and managing risk in peer-to-peer lending and alternative lending platforms. Investor relations teams employ scenario planning and regulatory arbitrage to optimize yield enhancement and capital preservation in the secondary market. Portfolio managers utilize big data and financial reporting to ensure regulatory capital and credit enhancement, while cloud computing facilitates data security and financial inclusion.
Disruptive technologies, such as digital identity and scenario planning, are transforming the industry, necessitating careful cash flow analysis and waterfall structure adjustments. Regulatory bodies continue to focus on capital adequacy and financial reporting, as market participants navigate the evolving regulatory landscape and seek to minimize tax optimization.

How is this Structured Finance Industry segmented?

The structured finance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Large enterprises
  SMEs


Type

  CDO
  Asset-backed securities
  Mortgage-backed securities


Product

  Loans
  Bonds
  Mortgages
  Credit card and trade receivables
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.

In the intricate world of structured finance, major enterprises play a pivotal role. These businesses, with substantial capital resources, engage in complex financing agreements to minimize risk and optimize capital structures. Through structured finance, various financial responsibilities and assets, including bonds, mortgages, and loans, are combined to create customized financial products. These securitized assets are then sold to investors, enabling businesses to raise essential capital. Significant entities in this market include investment banks, hedge funds, insurance companies, pension funds, and real estate firms. They employ financial engineering and artificial intelligence to evaluate risks and opportunities, while regulatory compliance is ensured through stringent due diligence.

Capital markets facilitate the issuance of various securities, such as convertible bonds, equity-linked notes, and structured products. Structured finance also encompasses specialized areas like project finance, mezzanine financing, and distressed debt. Sustainable finance and social bonds have gain