In the CP and corporate bond markets, credit spreads have narrowed with the decline in short- to medium-term interest rates and investors have become more willing to take risks. Therefore, the demand for issuance of new securities in firms with relatively high credit ratings has increased and the amount outstanding of issuance of CP and corporate bonds has maintained a high level.
In Japan, the share of corporate financing through the capital markets is still relatively small. However, it has become important as a channel by which the monetary easing measures have permeated through the economy because the credit intermediation function of banks is weakened.