High-Yield Bonds Market Report and Forecast 2025-2034

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.

Key Trends in the Market

High-yield bonds are corporate bonds that are issued by a firm with lower credit ratings. These bonds are issued with the assurance to provide interest payments and repay the principal amount when they reach maturity date. These bonds are considered riskier investments compared to those with higher credit ratings as it is likely for the issuer to default due to lower credit ratings.

• One of the prominent global high-yield bonds market trends includes the steady rise in issuance volume. Various factors such as high interest rates, favourable economic conditions, and a robust demand for yield have significantly propelled the trend. Firms are leveraging supportive monetary policies of central banks to issue high-yield debt, benefiting from the comparatively low borrowing expenses in contrast to past standards.
• The increasing globalisation is another major trend aiding the global high-yield bonds market demand. The rising globalisation has compelled different issuers from various regions to enter the market, providing investors with exposure to a broader range of geographies and industries. This has also led to greater cross-border investment and increased competition among issuers.
• Regulatory policies and changes in market regulations can have a significant impact on the high-yield bonds market demand. Stricter regulatory requirements can lead to increased due diligence and scrutiny for issuers, potentially affecting issuance volumes and pricing. On the other hand, regulatory easing can facilitate greater access to high-yield bonds.

High-Yield Bonds Market Segmentation

The report titled “High-Yield Bonds Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Fallen Angels
• Rising Stars

Market Breakup by End Use

• Retail Investors
• Institutional Investors
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

High-Yield Bonds Market Share by Type

Rising star bonds are expected to account for a significant portion of the global high-yield bonds market share in upcoming years. Rising star bonds refer to a specific category of corporate bonds that are considered to be on the verge of transitioning from a lower credit rating to a higher, more favourable credit rating. These bonds provide a great opportunity for investors seeking higher returns, as they often offer higher interest rates to compensate for the higher risk associated with the ongoing financial transition.

High-Yield Bonds Market Share by End-Use

According to the global high-yield bonds market analysis, institutional investors are expected to play a crucial role in the development of the market. These investors are typically large financial entities or organisations that manage substantial pools of capital on behalf of themselves or their clients. These investors usually operate in various fields, including mutual funds, hedge funds, insurance, and pensions, among others, and they hold a significantly larger amount of capital to invest compared to individual retail investors. This allows them to participate in larger bond issuances and diversify their holdings across a wide range of issuers.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global high-yield bonds market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

BlackRock, Inc.

BlackRock, Inc. is one of the largest known global investment management corporations operating with its headquarters located in the United States of America. Established in 1988, it has become one of the largest and most influential asset management firms in the world. The corporation’s expertise lies in investment management and provides a wide range of financial products and services to institutional and individual investors.

Morgan Stanley

Morgan Stanley is a worldwide financial services corporation with its main office in New York City, USA, that was established in 1935. Since then, it has evolved into one of the preeminent and largest investment banks on a global scale. The company's operations encompass a broad spectrum, ranging from investment banking and asset management to wealth management and trading.

M&G plc Group

M&G plc Group is a British multinational investment company headquartered in London, the United Kingdom. It has a long history dating back to 1931 and is one of the United Kingdom’s largest and oldest investment management companies. It is primarily engaged in investment management, offering a wide range of products and services to individuals, institutions, and financial intermediaries.

Other global high-yield bonds market players include Alcentra Limited, The Vanguard Group, Inc., Aegon Group, Northern Trust Corporation, The Charles Schwab Corporation, T. Rowe Price International Ltd, and Nomura Asset Management Group, among others.