Global investment grade and high yield bond issuance rose year-on-year (YoY) in 2025 as market conditions improved and are still supportive, according to Debtwire data and several research reports.

Tightening credit spreads meant coupon costs for bonds became cheaper for issuers throughout the year, leading to increased volumes. Average yields for European currency high yield were around 6.0% while US high yield had an average yield of around 7.0% according to JPMorgan indices in late-December 2025. Total returns for 2025 were around 5.7% and 8.2%, respectively, for the two indices.

High yield performance was surprisingly robust in 2025 in Europe and the US. Both investment grade and high yield spreads moved tighter throughout 2025. In Europe, the iTraxx Crossover started 2025 at around 306bps-mid before widening to 427bps on 9 April 2025 and then strongly tightening to close the year at around 244bps-mid. The iTraxx Main also started 2025 around 56bps-mid but widened to 85bps-mid on 9 April before closing 2025 at 51bps-mid.

In the US, the CDX-NAHY index started 2025 at 308bps-mid and widened to 476bps-mid on 7 April but then closed the year around 316bps-mid. The CDX-NAIG index started 2025 at 49bps-mid and widened to 76bps-mid on 7 April but closed the year at around 50bps-mid.