GITNUX MARKETDATA REPORT 2024

High Yield Bond Industry Statistics

High yield bond industry statistics provide insight into the performance, risk, and trends of non-investment grade bonds which typically offer higher returns but are accompanied by higher default risk.

Last Updated: June 22, 2024

Written & Summarized by: Jannik Lindner

How we write

In this post, we explore key statistics and insights into the high-yield bond industry, shedding light on the global landscape, market size, default rates, sector trends, yields, returns, and more. From the growing number of high-yield bond ETFs to the impact of sector-specific defaults, these statistics offer a comprehensive overview of this dynamic sector.

Statistic 1

"As of 2020, there are around 125 high-yield bond ETFs globally."

Statistic 2

"As of the end of 2020, the size of the global high yield market was about $2.9 trillion."

Statistic 3

"In 2020, new issuance in the U.S. high yield market topped $500 billion."

Statistic 4

"Over 75% of high yield bonds that defaulted in 2020 were rated 'B-'or lower."

Statistic 5

"The energy sector accounted for 32% of global high yield defaults in 2020."

Statistic 6

"In Q2 2020, the high yield default rate was 6.2% in the U.S., the highest since 2009."

Statistic 7

"The average yield to maturity of the high yield bond market was 5.1% as of December 2020."

Statistic 8

"In 2019, the return on global high yield bonds was 14.4%."

Statistic 9

"Investment-grade bond yields averaged 0.68% in September 2021, compared to 3.58% for high yield bonds."

Statistic 10

"In 2020, high yield ETFs attracted net inflows of $44 billion."

Statistic 11

"From 2010-2019, the average coupon of a high yield bond in the U.S. was roughly 7%."

Statistic 12

"As of November 2020, the option-adjusted spread on U.S. high yield bonds was 594 basis points."

Statistic 13

"Around one in five (18 percent) of U.S. high yield issuers defaulted during the financial crisis of 2008-2009."

Statistic 14

"The Barclays high yield index had a standard deviation of 9% from 1983 to 2019."

Statistic 15

"In 2019, the global issuance of high yield bonds amounted to $465 billion."

Statistic 16

"The default rate of U.S. high yield bonds peaked at 15.7% in 2009."

Statistic 17

"In 2020, the oil and gas industry accounted for the highest proportion (approximately 10%) of high yield debt issuance in the U.S."

Statistic 18

"About 35% of the U.S. High Yield Index is made up of bonds rated BB, the highest rating in high yield."

Statistic 19

"The U.S. high yield bond market has returned nearly 140% over the last decade."

In conclusion, the high-yield bond industry is a complex and dynamic sector with various factors influencing its performance. The statistics reveal a significant growth in the number of high-yield bond ETFs globally, emphasizing the increasing popularity of this investment avenue. The market size and issuance volumes underscore the substantial financial activity within the industry, with a notable concentration of defaults in lower-rated bonds and specific sectors such as energy. The variability in default rates, yields, and returns highlights the inherent risk and reward trade-off associated with high-yield bonds. Overall, the statistics paint a comprehensive picture of the high-yield bond market’s evolution and resilience amid changing economic landscapes.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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