Corporate bonds

Corporate bonds are debt instruments issued by companies to raise capital for business operations. Unlike stocks, they represent a loan — investors lend money, and in return, the company agrees to pay regular interest and repay the full principal at maturity.

While they carry more risk than government bonds — due to the potential instability or shorter lifespan of companies — corporate bonds are generally safer than stocks. Bondholders have priority over shareholders if the company runs into financial trouble.

Use our Bond Screener to discover and analyze corporate bonds that fit your investment strategy.

The best corporate bonds to buy are those that align with your risk tolerance and strategy.

One of the factors many investors consider is the issuer's credit rating, an assessment of the likelihood that an issuer company will meet its debt obligations on time. The most respected credit rating agencies are Moody's, Fitch Ratings, and S&P Ratings.

Many investors also prefer fixed-income ETFs — they make corporate bond more accessible if you're not ready to invest directly.

You can find more investment-grade bonds with our Bond Screener.

Corporate bond yields are the returns on investments made. There are four different types of corporate bond yields.

- Current yield measures the income you’re getting from the bond relative to its current market price. It's calculated by dividing the coupon rate by the price of the bond

- Yield to maturity (YTM) is the annualized internal rate of return an investor would earn if they buy a bond at its current price, hold it until the maturity date, and receive all the coupon payments and the par value at maturity of a bond

- Bond equivalent yield (BEY) is calculated by doubling the semiannual yield. It serves for comparison purposes and does not imply a detailed analysis of a bond's total return

- Effective annual yield (EAY) is a way to represent the actual return of a bond assuming that the coupon payments are reinvested at the same rate as the bond's coupon yield

Corporate bond rate (coupon rate) is the annual interest paid by the issuer, based on the bond’s face value. Payments are usually made regularly with different frequencies until maturity (e.g. every 3 or 6 months), depending on the bond type.

Some government bonds are zero-coupon, meaning they pay no interest. Instead, they are sold at a discount to their face value, which compensates for the lack of regular interest.

Looking for the right bond? Use our Bond Screener to compare alternatives.

Sometimes called junk bonds, high-yield corporate bonds are typically issued by companies facing financial challenges. These companies have lower credit ratings and weaker financials, making them riskier investments. To compensate for this risk, they offer higher coupon rates to attract investors. Traders may buy these bonds hoping for capital gains if the issuer’s credit rating improves.

Regardless of your strategy, avoid jumping in blindly — always conduct thorough research before investing.

Stay informed with our News Flow, and monitor company earnings to track potential shifts in risk and return.

The par value (also called face value or principal) is the amount the company agrees to repay when the bond reaches maturity.

In the secondary market, bond prices can fluctuate as new bonds with different coupon rates are issued. For example, if you hold a corporate bond with a 3% coupon and new bonds offer 3.5%, your bond may trade at a lower price since it yields less interest.

However, at maturity, both bonds will still be repaid at the same par value — regardless of how their market prices have changed.

Track corporate bond rates to stay on top of market movements.

Investment-grade corporate bonds are considered the safest option among bonds. This is because the issuing companies follow strong financial practices and are recognized for their stability. That recognition comes from one of the three major credit agencies — Moody's, Fitch Ratings, and S&P Ratings. These agencies use similar rating systems for both governments and companies.

Investment-grade bonds typically offer lower coupon rates, but their appeal lies in reliability. Investors often prefer them for the reduced risk and higher likelihood of repayment — in contrast to high-yield bonds, which can be more volatile.

Discover more investment-grade companies by filtering for them in our Bond Screener.

The maturity date is the date on which the issuer must repay the face value of a bond. It is one of the key factors that determine a bond's price, and until the bond is redeemed, bondholders receive interest payments (coupon rate).

Corporate bonds are usually grouped by maturity:
- Short-term: 3 years or less
- Medium-term: 3–10 years
- Long-term: 10 and more

Bonds with a longer time to maturity tend to be riskier, as their prices can fluctuate over time on the secondary market due to the issuance of new bonds.

Explore our lists of short-term corporate bonds and long-term corporate bonds to better understand the bond market.

Buying a corporate bond is a simple process, but you'll need a reliable broker to help you access the market. Once you've found the brokerage that suits your style and requirements, you can proceed with opening an account there. Explore our list of broker partners and start trading right from your charts.

Before investing, TradingView strongly recommends taking time to understand the market. You can test your strategy using a Paper Trading account, and make use of our Bond Screener to discover the best investment opportunities.

Market price is what a corporate bond sells for on the secondary market. Depending on economic conditions, the issuer's credit rating, and other available bonds, it can be higher or lower than the bond's face value. In such cases, bonds are traded at a discount or premium.

You can find the prices and yields of various bonds with our Bond Screener.