The Evolution of the Corporate Bond Market
July 29, 2024 — Over the past 20 years, the corporate bond market has experienced a significant evolution driven by economic cycles, regulatory shifts, and changing investor demand. From the recovery following the early 2000s dot-com bubble through the global financial crisis, which spurred central bank interventions that resulted in low interest rates and record bond issuance and refinancing – the last two decades have seen a surge in demand for corporate bonds. Indeed, compared to 20 years ago, the investment grade (IG) corporate bond market grew by 308%, to reach a total market value of $6.6 trillion as of June 30, 2024. High yield (HY) corporate bonds grew by 131%, to reach a total market value of $1.3 trillion over the same period.
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