Regulatory frameworks and trends in the corporate bond market

Since the global financial crisis, corporate bond issuance has surged, especially in emerging markets. This growth has provided companies with greater access to finance but has also introduced new risks, particularly when regulations are not adequate. Transparent and accountable practices in bond markets build trust, enhance market efficiency, and support corporations' resilience and long-term projects, including by addressing environmental and societal challenges through sustainable bonds. This paper analyses regulatory frameworks for the corporate bond market in eight jurisdictions (Australia, Brazil, the People’s Republic of China, Israel, Japan, Luxembourg, the United Kingdom and the United States). It identifies key issues related to directors' fiduciary duties, bond issuance decisions, disclosure requirements, bondholder rights, trustees, out-of-court debt restructuring and sustainable corporate bonds.