• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    High Yield Bonds Market

    ID: MRFR/BFSI/21347-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    High Yield Bonds Market Research Report By Currency (USD, EUR, GBP, JPY, CNY), By Term (Less than 1 year, 1 to 5 years, 5 to 10 years, 10 years or more), By Issuer Type (Corporate, Financial Institutions, Government, Sovereign), By Yield to Maturity (Less than 5%, 5% to 8%, 8% to 10%, 10% or more), By Rating (BB+, BB-, B+, B-, CCC+) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) – Industry Forecast to 2035

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    High Yield Bonds Market Infographic
    Purchase Options

    High Yield Bonds Market Summary

    The Global High Yield Bonds Market is projected to experience substantial growth from 5981.72 USD Billion in 2024 to 9035.01 USD Billion by 2035.

    Key Market Trends & Highlights

    High Yield Bonds Key Trends and Highlights

    • The market is expected to grow at a compound annual growth rate of 7.84 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 541.32 USD Billion, indicating robust demand.
    • in 2024, the market is valued at 5981.72 USD Billion, reflecting a solid foundation for future expansion.
    • Growing adoption of high yield bonds due to increasing investor appetite for higher returns is a major market driver.

    Market Size & Forecast

    2024 Market Size 5981.72 (USD Billion)
    2035 Market Size 9035.01 (USD Billion)
    CAGR (2025 - 2035) 3.82%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    High Yield Bonds Market Trends

    The global high yield bond market exhibits significant growth potential, driven by several key market drivers. One major factor influencing the market is the increasing demand for higher yields by investors seeking to enhance returns in a low-interest rate environment. Moreover, the shift towards alternative investment strategies has led to increased allocation to high yield bonds that provide diversification benefits and potential for alpha generation.

    Opportunities within the market lie in the expansion of emerging market high yield bonds, which offer diversification benefits and attractive risk-return profiles for investors seeking exposure to higher-growth economies. Additionally, the continued development of structured products and innovative financing solutions provides opportunities for investors to access and customize their investments in high yield bonds. Recent trends in the high yield bond market include the emergence of ESG-focused high yield bond issuance, aligning with the growing investor demand for sustainable and socially responsible investments.

    Furthermore, the utilization of technology and data analytics has enhanced due diligence and risk management capabilities, contributing to informed investment decisions and the overall stability of the market.

     

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    The Global High Yield Bonds Market appears to be experiencing a notable increase in investor interest, driven by the search for yield in a low-interest-rate environment, which may suggest a shift in risk appetite among market participants.

    U.S. Securities and Exchange Commission

    High Yield Bonds Market Drivers

    Regulatory Environment

    The regulatory environment surrounding the Global High Yield Bonds Market Industry plays a crucial role in shaping market dynamics. Regulatory frameworks that promote transparency and investor protection can enhance confidence in high yield bonds, attracting more participants to the market. As regulations evolve, they may facilitate greater access to high yield bonds for retail investors, further expanding the market. The anticipated growth to 235.94 USD Billion in 2024 suggests that favorable regulatory conditions could be instrumental in driving investment flows into high yield bonds. The interplay between regulation and market participation will likely influence future trends.

    Market Growth Projections

    The Global High Yield Bonds Market Industry is projected to experience substantial growth, with estimates indicating a rise to 541.32 USD Billion by 2035. This growth trajectory, characterized by a compound annual growth rate of 7.84% from 2025 to 2035, reflects the increasing interest in high yield bonds as a viable investment option. Factors such as economic recovery, demand for yield, and diversification strategies are likely to contribute to this upward trend. The market's expansion may also attract new issuers, further enriching the high yield bond landscape and providing investors with a wider array of opportunities.

    Diversification Strategies

    In the context of the Global High Yield Bonds Market Industry, diversification strategies are becoming increasingly vital for investors. High yield bonds offer a unique opportunity to diversify portfolios, particularly in an environment characterized by market volatility. By incorporating high yield bonds, investors may mitigate risks associated with traditional equity investments while potentially enhancing overall returns. This trend is underscored by the projected growth of the market to 541.32 USD Billion by 2035, indicating a robust interest in diversifying investment portfolios through high yield assets. The strategic allocation to high yield bonds is likely to be a key driver of market expansion.

    Increasing Demand for Yield

    The Global High Yield Bonds Market Industry is experiencing a notable surge in demand as investors seek higher returns in a low-interest-rate environment. With the market projected to reach 235.94 USD Billion in 2024, the appetite for yield is driving capital towards high yield bonds. This trend is particularly pronounced among institutional investors, such as pension funds and insurance companies, which are increasingly allocating a portion of their portfolios to high yield assets. The pursuit of yield is likely to continue as economic conditions evolve, suggesting that the Global High Yield Bonds Market Industry will remain a focal point for investment strategies.

    Economic Recovery and Growth

    The Global High Yield Bonds Market Industry is poised to benefit from anticipated economic recovery and growth. As economies rebound, corporate earnings are expected to improve, enhancing the creditworthiness of issuers in the high yield segment. This is particularly relevant as the market is projected to grow to 541.32 USD Billion by 2035, with a compound annual growth rate of 7.84% from 2025 to 2035. Investors may perceive high yield bonds as an attractive option for capitalizing on growth opportunities, thereby driving further investment into this sector. The interplay between economic conditions and high yield bond performance will likely shape market dynamics.

    Technological Advancements in Trading

    Technological advancements are transforming the Global High Yield Bonds Market Industry, enhancing trading efficiency and accessibility. Innovations such as algorithmic trading and blockchain technology are streamlining transactions and reducing costs, making high yield bonds more attractive to a broader range of investors. As the market evolves, these technological improvements could lead to increased liquidity and better pricing mechanisms. The projected growth of the market to 541.32 USD Billion by 2035 indicates that technology will likely play a pivotal role in shaping the future landscape of high yield bonds, potentially attracting new participants and driving overall market expansion.

    Market Segment Insights

    High Yield Bonds Market Currency Insights

    The Currency-based segments of the High Yield Bonds Market provide insight into the performance of High Yield Bonds in the context of the most prominent currencies. The USD segment is highly significant because of the popularity of the US currency and the large size of the US High Yield Bonds market. The EUR segment is also preliminary significant because of the role of the Eurozone as a key economic area alongside the presence of multiple European High Yield Bonds issuers.

    The GBP segment is also, to a great degree, substantial because of the relatively high share of the UK High Yield Bonds market, which is well-established and highly active.The JPY segment is the least prominent in the current state, yet there is still significant activity thanks to the Bank of Japan’s efforts in the field of quantitative easing. The CNY segment is to become increasingly significant in the future due to the gradual development and internationalization of the Chinese High Yield Bonds market.

    In conclusion, the Currency segments offer a valuable frame of analysis that can support the qualitative understanding of the High Yield Bonds Market at the granular level, supporting the investment decision-making processes of potential investors with specific requirements and preferences.

    High Yield Bonds Market Term Insights

    The term segment plays a crucial role in shaping the dynamics of the High Yield Bonds Market. Within this segment, the 'Less than 1 year' category holds a significant market share due to the short-term nature of these bonds and their appeal to investors seeking quick returns. The '1 to 5 years' category follows closely, driven by the need for slightly longer-term investments with moderate risk tolerance.

    The '5 to 10 years' category caters to investors seeking a balance between risk and return over a longer time horizon, while the '10 years or more' category attracts those prioritizing capital preservation and steady returns over an extended period.The High Yield Bonds Market revenue is expected to grow steadily in the coming years, with each term segment contributing to the overall market expansion. Data suggests that the 'Less than 1 year' category will continue to lead in terms of market share, while the '5 to 10 years' category is projected to witness significant growth in the future.

    High Yield Bonds Market Issuer Type Insights

    The Issuer Type segment of the High Yield Bonds Market is categorized into Corporate, Financial Institutions, Government, and Sovereign. Corporate issuers accounted for the largest share of the market in 2023, with a valuation of approximately USD 650.0 billion. Financial Institutions held the second-largest share, valued at around USD 220.0 billion. Government and Sovereign issuers had smaller market shares, with valuations of USD 75.0 billion and USD 30.0 billion, respectively. The Corporate segment is expected to continue dominating the market, driven by the increasing demand for high-yield bonds from corporations seeking alternative financing options.

    High Yield Bonds Market Yield to Maturity Insights

    The Yield to Maturity segment plays a vital role in shaping the High Yield Bonds Market revenue. In 2023, the 'Less than 5%' segment held the largest market share, valued at 275.34 (USD Billion), and is projected to maintain its dominance throughout the forecast period. The '5% to 8%' segment is expected to witness significant growth, expanding from 223.76 (USD Billion) in 2023 to 357.98 (USD Billion) in 2032.

    The '8% to 10%' segment is estimated to reach 257.31 (USD Billion) by 2032, while the '10% or more' segment is anticipated to grow at a CAGR of 2.5%, reaching 116.44 (USD Billion) in 2032.These insights highlight the evolving dynamics of the High Yield Bonds Market segmentation, enabling stakeholders to make informed investment decisions and capitalize on growth opportunities.

    High Yield Bonds Market Rating Insights

    The Rating segment is a crucial aspect of the High Yield Bonds Market segmentation, providing insights into the creditworthiness and risk profiles of the bonds issued. Within this segment, 'BB+' bonds accounted for the largest share of the market in 2023, with a valuation of USD 345.67 billion and an estimated growth to USD 410.0 billion by 2032. 'BB-' bonds followed closely, with a 2023 valuation of USD 298.76 billion and a projected increase to USD 350.0 billion in 2032.

    Both 'B+' and 'B-' bonds exhibited steady growth, with market values reaching USD 187.56 billion and USD 143.90 billion in 2023, respectively.'CCC+' bonds, representing the riskiest category, held a market size of USD 120.10 billion in 2023 and are anticipated to grow to USD 140.0 billion by 2032. These figures highlight the significant market presence of high-yield bonds with varying credit ratings, indicating the diverse investment opportunities available within this segment.

    Get more detailed insights about High Yield Bonds Market

    Regional Insights

    Regional Market Overview The High Yield Bonds Market is segmented into North America, Europe, APAC, South America, and MEA. North America held a dominant market share in 2023 and is projected to maintain its lead throughout the forecast period. The region's robust economy, presence of major financial institutions, and favorable regulatory environment contribute to its dominance. Europe follows North America in terms of market size and is expected to grow steadily due to increasing demand from institutional investors. APAC is also expected to witness significant growth, driven by rising disposable income and increasing awareness of high-yield bonds among retail investors.

    South America and MEA are expected to contribute to the market's growth but currently account for a relatively small share of the global market.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Key Players and Competitive Insights

    There are a lot of strategies that the most important players in the High Yield Bonds Market industry use to gain competitive advantages. Among them are industrial expansion, such as entry to other countries and regions, acquiring smaller companies that perform in the same market, and development of new products and services in their line. Many of the leading High Yield Bonds Market players pay attention to the necessity of improving their customer service and support to create strong ties with the audience.

    Among the major factors that influence High Yield Bonds Market development are technological progress, changes in legislation, and fluctuations in economic conditions. In the future, it is possible to expect that the competitive environment will become even more dynamic, with many new players entering the market.

    BlackRock is one of the key players in the High Yield Bonds Market and one of the greatest asset managers in the world. The company provides mutual funds, exchange-traded funds, and separately managed accounts for the High Yield Bonds Market. The specialists who work for the organization have a deep level of expertise in the industry and are able to provide all the customers with the guidance that is necessary for achieving their aims and objectives. Another leading High Yield Bonds Market player is JPMorgan Chase, the experts of which have several years of experience of work in the area.

    These professionals are known for the ability to offer clients tailored solutions in accordance with their specific demands. JPMorgan Chase is also well known for a range of innovative High Yield Bonds Market products and services that it has recently developed.

    Key Companies in the High Yield Bonds Market market include

    Industry Developments

    • Q2 2025: High yield markets close first half of 2025 on a high US and European high yield bond issuance rallied in Q2 2025, with the US market recording $32.4 billion in new issuance in June—the highest monthly total since 2021, following recovery from tariff-induced volatility earlier in the year.
    • Q2 2025: High yield markets close first half of 2025 on a high European high yield bond issuance reached a record €29.7 billion (about $35 billion) in June 2025, marking the busiest month ever for the region’s high yield market.
    • Q2 2025: Dividend Recaps in 2025: High-Yield Bonds Crash the Party Private equity sponsors increased use of high-yield bonds to finance dividend recapitalizations in 2025, with average pricing on recap-related bond deals dropping to 7.36%, down from 8.38% in 2024.
    • Q3 2025: High Yield Market Update: July 2025 The U.S. high yield market returned 0.45% in July 2025, supported by strong technicals, solid earnings, and resilient economic growth, with lower-quality credits outperforming and spreads tightening by 12 basis points.
    • Q3 2025: High Yield Market Update: July 2025 Default rates in the U.S. high yield market moved marginally lower and held steady at very low levels in July 2025, while credit upgrades outpaced downgrades.
    • Q2 2025: What's Next for High-Yield Bond Funds? The BlackRock High Yield Bond Fund (BRHYX), the largest in the category, reported a year-to-date return of 2.7% as of May 19, 2025, rebounding from a 2.0% decline earlier in the year.
    • Q2 2025: What's Next for High-Yield Bond Funds? The Vanguard High-Yield Corporate Bond Fund (VWEAX), the second-largest, posted a 3.0% year-to-date return as of May 19, 2025, after recovering from a 0.4% decline earlier in the year.
    • Q4 2024: Is 2025 (finally) the Year of the Bond? December 2024 saw significant increases in global government bond yields, with the U.S. 10-year Treasury yield rising by 40 basis points and the yield curve steepening, impacting high yield bond market conditions entering 2025.

    Future Outlook

    High Yield Bonds Market Future Outlook

    The Global High Yield Bonds Market is projected to grow at a 3.80% CAGR from 2025 to 2035, driven by increasing demand for higher returns and evolving investor strategies.

    New opportunities lie in:

    • Develop innovative bond structures to attract institutional investors.
    • Leverage technology for enhanced risk assessment and portfolio management.
    • Expand into emerging markets to tap into new investor bases.

    By 2035, the market is expected to solidify its position as a key investment avenue, reflecting robust growth.

    Market Segmentation

    High Yield Bonds Market Term Outlook

    • Less than 1 year
    • 1 to 5 years
    • 5 to 10 years
    • 10 years or more

    High Yield Bonds Market Rating Outlook

    • BB+
    • BB-
    • B+
    • B-
    • CCC+

    High Yield Bonds Market Currency Outlook

    • USD
    • EUR
    • GBP
    • JPY
    • CNY

    High Yield Bonds Market Regional Outlook

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

    High Yield Bonds Market Issuer Type Outlook

    • Corporate
    • Financial Institutions
    • Government
    • Sovereign

    High Yield Bonds Market Yield to Maturity Outlook

    • Less than 5%
    • 5% to 8%
    • 8% to 10%
    • 10% or more

    Report Scope

    Report Attribute/MetricDetails
    Market Size 2024USD 5981.72 Billion
    Market Size 2025USD 6210.24 Billion
    Market Size 20359035.01 (USD Billion)
    Compound Annual Growth Rate (CAGR)3.82% (2025 - 2035)
    Base Year2024
    Market Forecast Period2025 - 2035
    Historical Data2020-2023
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledJefferies, J.P. Morgan, Barclays, Citigroup, Wells Fargo Company, Deutsche Bank, Bank of Americ, Goldman Sachs, RBC Capital Markets, Guggenheim, UBS, Credit Suisse, Lazard, Morgan Stanley
    Segments CoveredCurrency, Term, Issuer Type, Yield to Maturity, Rating, Regional
    Key Market OpportunitiesMerger and acquisition opportunities.Increasing demand from institutional investors.Growing popularity of exchange-traded funds ETFs.Development of new high-yield bond indices.Emergence of new markets and issuers.
    Key Market DynamicsRising Interest Rates.Market Volatility.Credit Risk.Investor Demand.Economic Growth.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    FAQs

    What is the expected size of the High Yield Bonds Market in 2024 and 2035?

    The High Yield Bonds Market is expected to be valued at approximately USD 5981.72 billion in 2024. It is projected to reach USD 9035.01 billion by 2035, growing at a CAGR of 3.82% from 2025 to 2035.

    Which region is expected to have the largest market share in the High Yield Bonds Market?

    North America is expected to dominate the High Yield Bonds Market, accounting for the largest market share. The region's well-established financial markets, presence of major investment firms, and favorable regulatory environment contribute to its dominance.

    What are the key application segments of the High Yield Bonds Market?

    High Yield Bonds are primarily used for financing mergers and acquisitions, capital expenditures, and debt refinancing. They are popular among companies with lower credit ratings or higher risk profiles, as they offer higher yields compared to investment-grade bonds.

    Who are the major competitors in the High Yield Bonds Market?

    The High Yield Bonds Market is highly competitive, with a presence of numerous investment banks, asset managers, and insurance companies. Some of the key players include JP Morgan, Goldman Sachs, Citigroup, BlackRock, and PIMCO.

    What are the key trends shaping the High Yield Bonds Market?

    The High Yield Bonds Market is influenced by several key trends, including economic conditions, interest rate movements, regulatory changes, and investor risk appetite. The increasing demand for yield and the search for higher returns in a low-interest-rate environment is driving growth in the market.

    What is the expected growth rate of the High Yield Bonds Market in the next five years?

    The High Yield Bonds Market is projected to grow at a CAGR of 3.82% from 2025 to 2035. Market growth will be driven by factors such as the increasing need for financing by companies, the search for yield by investors, and the development of new products and strategies.

    What are the challenges faced by the High Yield Bonds Market?

    The High Yield Bonds Market faces several challenges, including credit risk, interest rate volatility, and regulatory changes. The inherent risk associated with high-yield bonds, as well as the potential for interest rate increases, can impact market performance.

    What are the opportunities for growth in the High Yield Bonds Market?

    The High Yield Bonds Market presents opportunities for growth through the development of new products, such as ESG-linked bonds and structured products. The increasing demand for yield and the diversification of investment portfolios are also expected to drive growth in the market.

    What are the key factors driving the growth of the High Yield Bonds Market?

    The growth of the High Yield Bonds Market is primarily driven by the increasing need for financing by companies, particularly in emerging markets. The search for yield by investors in a low-interest-rate environment is also a major growth driver for the market.

    What is the impact of regulatory changes on the High Yield Bonds Market?

    Regulatory changes can have a significant impact on the High Yield Bonds Market. New regulations aimed at increasing transparency and reducing risk in the financial system could affect the issuance and trading of high-yield bonds. Changes in capital requirements and risk management guidelines can also impact market activity.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Case Study
    Chemicals and Materials