Bloomberg
Japan Sees Rush for Covenant Shelter as BBB-Rated Bond Sales Fly
Thursday, August 6, 2026
Japanese companies sold more corporate bonds with investor protection provisions in 2026 through the reporting date than during all of 2025, according to bond market data. Lower-rated borrowers increased their use of bond markets instead of relying exclusively on bank loans for funding. The shift reflects changing capital-raising strategies among companies with lower credit ratings.
