Corporate Bond Market Report Scope & Overview:

Corporate Bond Market was valued at USD 38.47 Trillion in 2025E and is expected to reach USD 83.32 Trillion by 2033, growing at a CAGR of 10.23% from 2026-2033.

The Corporate Bond Market is expanding due to increasing corporate financing needs, rising capital expenditures, and the demand for diversified investment avenues. Favorable interest rate environments, growing investor appetite for stable fixed-income instruments, and the shift toward sustainable and ESG-compliant bonds are further fueling market growth. Additionally, globalization of financial markets, technological advancements in trading platforms, and regulatory support for transparent bond issuance are enhancing accessibility and liquidity, driving overall adoption by institutional and retail investors alike.

In 2023, corporate bond offerings funded over 40% of global capital expenditure by non-financial firms, with institutional and retail investor participation rising due to enhanced market transparency and streamlined electronic trading systems.

Corporate Bond Market Size and Forecast

• Corporate Bond Market Size in 2025: USD 38.47 Trillion

• Corporate Bond Market Size by 2033: USD 83.32 Trillion

• CAGR: 10.23% from 2026 to 2033

• Base Year: 2025E

• Forecast Period: 2026–2033

• Historical Data: 2022–2024

Corporate Bond Market Trends

• Rising investor preference for sustainable bonds, digital trading platforms, and improved transparency drives market growth.

• Increased issuance from emerging markets fueled by economic recovery and corporate financing needs globally.

• Growing demand for high-yield bonds amid low-interest-rate environments boosts yield-seeking investor activity.

• Integration of AI and analytics enhances risk assessment, pricing efficiency, and portfolio management strategies.

• Regulatory reforms and ESG-focused policies shape corporate bond structuring, disclosure, and investor participation trends.

U.S. Corporate Bond Market was valued at USD 12.74 Trillion in 2025E and is expected to reach USD 27.03 Trillion by 2033, growing at a CAGR of 9.94% from 2026-2033. 

Growth in the U.S. Corporate Bond Market is driven by rising corporate financing requirements, investor demand for stable fixed-income assets, and increasing issuance of ESG and sustainable bonds. Favorable interest rates, technological advancements in trading, and regulatory support are further enhancing market accessibility and liquidity.

Corporate Bond Market Growth Drivers:

• Increasing corporate financing needs for expansion and capital expenditure are driving the issuance of corporate bonds, providing companies with long-term, stable funding options across global markets

Corporations worldwide are increasingly relying on corporate bonds to finance business growth, acquisitions, infrastructure projects, and capital expenditures. Bonds provide predictable interest payments and long-term capital, making them an attractive financing alternative to bank loans or equity issuance. Investors are also drawn to the relatively stable returns offered by corporate bonds, particularly in low-interest-rate environments. The growing demand for diversified funding sources and capital market development across regions encourages more companies to access bond markets, supporting both corporate growth and the overall expansion of global corporate bond issuance.

In 2023, more than half of large non-financial corporations globally used bond markets to finance expansion plans, with average issuance sizes rising by over 20% compared to 2021.

• Low-interest-rate environments encourage corporations and investors to favor bonds over other financial instruments, boosting demand and promoting growth in the corporate bond market globally

Persistently low interest rates in many economies have made traditional savings and debt instruments less attractive, increasing investor appetite for corporate bonds offering higher yields. Corporations benefit from lower borrowing costs, prompting increased bond issuance to meet financing requirements efficiently. Investors seeking predictable income and capital preservation are more likely to allocate funds to corporate debt, further boosting market liquidity. This favorable macroeconomic environment, combined with improved regulatory frameworks and access to bond markets, has contributed to sustained growth in the corporate bond sector, particularly in developed and emerging economies.

In 2023, over 70% of major economies maintained policy rates below 3%, spurring record corporate bond issuance as companies locked in cheap funding and investors sought stable fixed-income returns.

Corporate Bond Market Restraints:

• Rising default risks and credit rating downgrades in volatile economic conditions can reduce investor confidence and limit the attractiveness of corporate bonds as a safe investment option

Economic volatility, geopolitical uncertainty, and sector-specific risks can increase the likelihood of corporate defaults, impacting bondholder returns. Downgrades by credit rating agencies reduce investor confidence, prompting higher risk premiums or lower demand for certain bonds. Investors may shift funds toward government securities or other low-risk instruments, limiting corporate bond market growth. Smaller companies with limited financial stability are particularly affected. As a result, heightened default risk and credit concerns can hinder investor participation, increase borrowing costs for issuers, and create challenges for sustained development of the corporate bond market.

In 2023, global corporate bond defaults reached a five-year high, with over 150 downgrades by major rating agencies amid inflationary pressures and tighter monetary policies.

• Regulatory restrictions, complex issuance procedures, and high compliance costs hinder market accessibility, particularly for small and medium-sized enterprises seeking to raise capital through corporate bonds

Issuing corporate bonds involves stringent legal and regulatory requirements, disclosure obligations, and approval processes, which can be time-consuming and costly. High compliance expenses disproportionately affect small and medium-sized enterprises (SMEs), making it challenging for them to access bond markets. Differences in regulations across jurisdictions create additional barriers for cross-border issuance. These factors discourage smaller companies from raising funds through bonds, limiting market diversification and growth. Regulatory complexity also increases operational burden for issuers and investors, slowing market efficiency and potentially reducing participation in the corporate bond ecosystem globally.

Over 60% of SMEs in emerging economies cite high compliance costs and lengthy approval processes as key barriers to issuing corporate bonds, limiting their access to bond markets.

Corporate Bond Market Opportunities:

• Growing investor interest in ESG-compliant and sustainable corporate bonds presents opportunities for issuers to attract socially conscious investors and diversify their funding sources globally

Environmental, social, and governance (ESG) considerations are increasingly influencing investor decisions, creating strong demand for sustainable corporate bonds. Companies can capitalize on this trend by issuing green bonds, social bonds, and sustainability-linked bonds to finance environmentally friendly projects or social initiatives. ESG-compliant instruments attract a broader investor base, including institutional investors and funds dedicated to responsible investing. This trend not only enhances brand reputation but also allows issuers to access new pools of capital. Expanding ESG-focused bond issuance represents a significant opportunity for market growth and innovation in the corporate bond sector.

Global sustainable bond issuance exceeded USD1.2 trillion in 2023, with corporate issuers increasingly adopting ESG frameworks to access a broader, values-driven investor base.

• Expansion of emerging markets with improving financial infrastructure allows more corporations to issue bonds, providing investors with higher-yielding opportunities and supporting market growth

Emerging economies are increasingly developing robust capital markets, offering corporations new avenues for debt financing. Improvements in legal frameworks, financial institutions, and market transparency make bond issuance more feasible for local companies. Investors are attracted to higher-yield corporate bonds in these markets, seeking diversification and better returns compared to developed economies. This growth potential encourages both domestic and international investors to participate in emerging market corporate bonds. As a result, expanding corporate bond issuance in these regions supports market depth, liquidity, and long-term growth while offering issuers greater access to capital.

Over 1,200 companies in emerging markets issued bonds in 2023, up from 850 in 2020, driven by stronger financial infrastructure and investor demand for higher yields.

Corporate Bond Market Segment Highlights

• By Investor Type: In 2025, Institutional Investors led the market with 40% share, while Pension & Retirement Funds is the fastest-growing segment with the highest CAGR (2026–2033)

• By Credit Type: In 2025, Investment-Grade Corporate Bonds led the market with 68% share, while High-Yield is the fastest-growing segment with the highest CAGR (2026–2033)

• By Coupon Type: In 2025, Fixed-Rate Corporate Bonds led the market with 80% share, while Floating-Rate Corporate Bonds is the fastest-growing segment with the highest CAGR (2026–2033)

• By Maturity: In 2025, Medium-Term (5–10 years) led the market with 34% share, while Long-Term (>10 years) is the fastest-growing segment with the highest CAGR (2026–2033)

• By Issuer / Industry Vertical: In 2025, Banking & Financial Services led the market with 27% share, while Information Technology & Telecom is the fastest-growing segment with the highest CAGR (2026–2033)

Corporate Bond Market Segment Analysis

By Investor Type: Institutional Investors segment led in 2025; Pension & Retirement Funds segment expected fastest growth 2026–2033

Institutional Investors segment dominated the Corporate Bond Market with the highest revenue share of about 40% in 2025 due to their large-scale investment capacity, preference for low-risk instruments, and need for stable, predictable returns. Their participation ensures liquidity and stability in the market. Strong regulatory frameworks and long-term investment strategies further reinforce their dominance globally.

Pension & Retirement Funds segment is expected to grow at the fastest CAGR from 2026-2033, driven by increasing global aging populations and rising allocations toward fixed-income instruments. The demand for predictable, long-term returns makes corporate bonds attractive for retirement planning. Expanding pension schemes, growing investor awareness, and the need to secure future liabilities are fueling rapid growth in this segment.

By Credit Type: Investment-Grade Corporate Bonds segment led in 2025; High-Yield segment expected fastest growth 2026–2033

Investment-Grade Corporate Bonds segment dominated the Corporate Bond Market with the highest revenue share of about 68% in 2025 due to low default risk, strong credit ratings, and stable yields. These bonds appeal to risk-averse investors, including institutions and retail participants, seeking reliable income. Their established market reputation and investor confidence ensure continued high demand.

High-Yield segment is expected to grow at the fastest CAGR from 2026-2033, driven by investor demand for higher returns amid low-interest-rate environments. Rising issuance by emerging companies, improving corporate fundamentals, and the willingness of investors to take higher risks for better yields are key factors driving the growth of the high-yield corporate bond segment.

By Coupon Type: Fixed-Rate Corporate Bonds segment led in 2025; Floating-Rate Corporate Bonds segment expected fastest growth 2026–2033

Fixed-Rate Corporate Bonds segment dominated the Corporate Bond Market with the highest revenue share of about 80% in 2025 due to predictable interest payments, stability, and ease of planning. Investors favor fixed-rate instruments for long-term income generation and reduced exposure to interest rate fluctuations, making them a preferred choice for both retail and institutional portfolios.

Floating-Rate Corporate Bonds segment is expected to grow at the fastest CAGR from 2026-2033, driven by rising interest rate environments and investor demand for protection against rate volatility. Adjustable coupon payments linked to benchmark rates provide higher returns during rate hikes, making floating-rate bonds an attractive instrument for yield-focused and risk-aware investors.

By Maturity: Medium-Term (5–10 years) segment led in 2025; same segment expected fastest growth 2026–2033

Medium-Term (5–10 years) segment dominated the Corporate Bond Market with the highest revenue share of about 34% in 2025 due to its balanced risk-return profile. Offering moderate interest rate risk with attractive yields, these bonds appeal to both institutional and retail investors. The segment is expected to grow at the fastest CAGR from 2026-2033, supported by rising demand for medium-duration investments amid market volatility and interest rate fluctuations, as investors seek stable yet profitable fixed-income instruments for diversification and cash flow planning.

By Issuer / Industry Vertical: Banking & Financial Services segment led in 2025; Information Technology & Telecom segment expected fastest growth 2026–2033

Banking & Financial Services segment dominated the Corporate Bond Market with the highest revenue share of about 27% in 2025 due to large-scale borrowing requirements, strong credit profiles, and investor confidence. These bonds are widely issued for expansion, capital management, and refinancing needs, establishing the sector as a significant contributor to corporate bond issuance globally.

Information Technology & Telecom segment is expected to grow at the fastest CAGR from 2026-2033, driven by increasing investments in digital infrastructure, technological expansion, and innovation. Strong growth potential, investor confidence, and rising funding requirements in IT and telecom sectors are accelerating bond issuance, making these industries the fastest-growing contributors to the corporate bond market globally.

Corporate Bond Market Regional Analysis

North America Corporate Bond Market Insights

North America accounted for the highest revenue share of about 38% in the Corporate Bond Market in 2025 due to the deep-rooted financial ecosystem, strong participation of institutional investors, and high issuance volumes by investment-grade corporates. The region’s mature regulatory framework, well-developed secondary market, and stable monetary policies further strengthened liquidity and investor confidence.

Asia Pacific Corporate Bond Market Insights

Asia Pacific is expected to grow at the fastest CAGR of about 12.30% from 2026–2033, driven by rapid economic expansion, increasing corporate financing needs, and government initiatives promoting bond market development. Rising foreign investor participation, improving credit rating systems, and diversification away from bank-dependent financing are expected to fuel substantial market acceleration across major economies.

Europe Corporate Bond Market Insights

Europe captured a significant share of the Corporate Bond Market in 2025, supported by strong issuance volumes from multinational corporations, increasing adoption of sustainable and ESG-linked bonds, and the robust presence of institutional investors such as pension funds and insurance companies. A highly regulated and transparent financial environment, along with growing demand for corporate debt as an alternative to low-yield sovereign bonds, contributed to sustained market strength across major economies.

Middle East & Africa and Latin America Corporate Bond Market Insights

The Middle East & Africa and Latin America together held a moderate share in the Corporate Bond Market in 2025, driven by rising corporate funding needs for infrastructure development, energy projects, and industrial expansion. Improving financial market reforms, gradual liberalization of capital markets, and growing foreign investor participation supported issuance activity. However, economic volatility, credit risk concerns, and limited secondary market liquidity restricted faster growth compared to developed regions, though the long-term outlook remains positive with ongoing regulatory modernization and diversification of corporate financing channels.

Corporate Bond Market Competitive Landscape:

JPMorgan Chase & Co.

JPMorgan Chase & Co. is one of the world’s largest underwriters and market makers in the corporate bond market, supporting both investment-grade and high-yield issuances across global sectors. Its bond trading desk is a key liquidity provider, while its indices and structured bond investment products are widely used by institutional investors. The firm also enhances market transparency through fixed-income research and digital bond-trading platforms that facilitate efficient price discovery.

• 2024, JPMorgan launched the JPMorgan US Liquid Index (JULI), an investment-grade corporate-bond index designed to provide performance benchmarks and valuation metrics for investment-grade corporate bonds.

BlackRock Inc.

BlackRock Inc. is the world’s largest asset manager and a major institutional buyer of corporate bonds through its ETFs, mutual funds, pension-fund strategies and fixed-income portfolios. The company provides global exposure to corporate bond markets via products such as iShares investment-grade, high-yield and ESG bond ETFs. Its Aladdin risk-management platform enables data-driven bond-valuation and market analytics. BlackRock also influences demand trends by allocating capital to sustainable, green and climate-themed corporate bonds.

• 2025, BlackRock’s iShares product lineup includes investment-grade corporate-bond ETFs, offering retail and institutional investors access to diversified corporate bond exposure through a single tradable instrument.

Goldman Sachs Group Inc.

Goldman Sachs Group Inc. is a major global investment banking and financial services firm with a strong footprint in the corporate bond market. The company provides end-to-end debt capital markets services, including structuring, underwriting and distribution of corporate bonds across sectors and geographies. Its fixed-income team supports both investment-grade and high-yield issuances, along with sustainability-linked and hybrid bonds. Goldman Sachs also plays a crucial role in secondary bond trading, pricing analytics and market-making, offering liquidity and risk-management solutions to institutional investors worldwide.

• 2024, Goldman Sachs published commentary saying borrowers could issue “USD1.5 trillion or more of U.S.-dollar corporate bonds in 2025,” highlighting expected heavy corporate-bond market activity and likely large roles for bond-issuing institutions.

Corporate Bond Market Key Players

Some of the Corporate Bond Market Companies are:

• JPMorgan Chase & Co.

• Bank of America Corporation

• Citigroup Inc.

• Goldman Sachs Group Inc.

• Morgan Stanley

• HSBC Holdings plc

• Barclays plc

• Deutsche Bank AG

• UBS Group AG

• BNP Paribas

• Wells Fargo & Company

• BlackRock Inc.

• Vanguard Group

• State Street Corporation

• Credit Suisse Group AG

• Mizuho Financial Group

• Mitsubishi UFJ Financial Group (MUFG)

• Sumitomo Mitsui Financial Group (SMFG)

• Royal Bank of Canada (RBC)

• Societe Generale S.A.