Top Profitable Bonds with Moderate Risk
Recently, investing in securities has become increasingly popular, with new investors preferring to buy shares and neglecting bonds.
The main reason for the low popularity of bonds is their low profitability, which is not always true unless you consider only government bonds as an investment object.
Because the highest returns are usually achieved through corporate securities, when you lend to a company rather than to the government.
The key is to find a balance between high profitability and risk, as in the event of bankruptcy, you may not only lose your profits, but also your investment.
How much can you get today on moderate-risk corporate bonds?
Top High-Coupon Bonds for 2026
Unfortunately, few reputable companies pay more than 10% per annum on securities, but even this payment in dollars, euros, or Polish zlotys would already be a record.
| № | Country / Issuer | Type | Total profit | Term | Peculiarities | Risk assessment |
|---|---|---|---|---|---|---|
| 1 | Poland: Echo Investment (ECH0328) | Corporate bond (Catalyst) | ~10.2–10.8 % | Maturity 2028 | A major developer with yields above 10% due to the high WIBOR rate | High |
| 2 | Poland: Kruk SA (KRU0330) | Corporate bond (Catalyst) | ~9.1–9.4 % | Repayment 2030 | A leader in debt collection, a blue chip on the Polish corporate market | Average |
| 3 | USA: Carnival Corp 7.625% (ISIN: US143658BN11) | Corporate Bond (High Yield) | ~8.9–9.2 % | 2026–2028 | Cruise giant shares trade at a premium due to debt load | High |
| 4 | Europe/International: ZF Europe Finance 6.125% (ISIN: XS2552225332) | Corporate bond, auto components sector | ~8.7–9.3 % | ~2029 | German auto parts maker delivers above-average returns on debt and industry transformation | Average |
| 5 | US: VanEck Fallen Angels ETF (Ticker: ANGL) | Exchange-traded fund (High Yield Bonds) | ~8.5–9.1 % | Diversified portfolio | A portfolio of bonds from companies whose ratings have been downgraded from investment grade to junk | Short |
Brief description of the companies
- Echo Investment is one of Poland's largest developers. The company actively builds and sells residential and commercial properties. The high bond yield is due to the current WIBOR rate and active investment activity.
- Kruk SA is a leader in the debt collection market in Poland. The company's bonds are considered relatively reliable in the corporate sector, with yields exceeding 9% due to the country's high interest rates.
- Carnival Corp. is the world's largest cruise ship operator. Following the pandemic, the company refinanced some of its debt, which led to higher bond yields. Despite high rates, Carnival remains one of the most prominent high-yield issuers in the US.
- ZF Europe Finance is a German automotive components manufacturer. Its bond yields are above the eurozone average due to industry transformation and the company's debt burden.
- The VanEck Fallen Angels ETF is an exchange-traded fund that invests in bonds of companies whose ratings have been downgraded from investment grade to high-yield. diversification reduces the risk of individual defaults and provides a stable average return.
Conclusion
Investing in such a portfolio of bonds and funds can achieve an average return of approximately 9% per annum. Diversification across different companies, countries, and sectors helps reduce the risk of losses from individual defaults, while simultaneously allowing for high overall returns.
This approach allows for a combination of reliable companies and moderate and high risk, making the portfolio an attractive option for investors looking to earn more than they would on traditional government bonds without taking on extreme risk.
