Corporate bond issuance reached a record ¥16.7 trillion in the financial year through March, according to data compiled by Bloomberg. | BLOOMBERG
Jul 21, 2026
Japan’s corporate bond market is changing as interest rates climb to their highest levels in around three decades.
While higher rates have raised borrowing costs for issuers, they have also incentivized investors toward fixed-income securities, setting in motion a new cycle of capital flows.
That’s happening as firms have been prioritizing capital spending to drive revenue growth instead of cost-cutting as Japan returns to an inflationary environment, said Noriaki Nomura, head of the debt capital markets division at Mitsubishi UFJ Morgan Stanley Securities.
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