Bondsavvy has recommended 19 new individual corporate bonds over the last 10 months. These recently recommended corporate bonds to buy have an average yield to maturity that is nearly 5x higher than the S&P 500 dividend yield. These bonds are a subset of the 68 corporate bonds we currently rate 'buy' or 'hold,' including 36 bonds we rate 'buy.'
Through September 9, 2025, these recent recommendations had achieved an average capital gain of 3.19%, which is on top of the bonds' average 6.08% pick date current yield.
This fixed income blog post previews the 19 recommended bonds to buy Bondsavvy has presented since November 2024. We will show you the prices, yields to maturity, maturity date ranges, and leverage ratios of these top bonds to buy. We also discuss why investors should consider owning individual corporate bonds now.
Please note that we update our recommended corporate bonds each quarter, and 18 of the 19 bonds are currently rated a 'buy.'
Before Bondsavvy, investors seeking the best individual corporate bonds to buy had to sift through over 10,000 corporate bonds available when buying bonds online. Since 2017, Bondsavvy has made bond investing easy and more profitable by presenting approximately 20 new recommended corporate bonds each year.
Our Recommended Bonds to Buy 2025 Preview
Bondsavvy makes new corporate bond recommendations each quarter during The Bondcast, a webinar exclusive to Bondsavvy subscribers. These recommendations include both investment grade and high yield corporate bonds. The 68 bonds currently on Bondsavvy's recommended corporate bonds list offer a wide range of maturity dates and are from issuers across over 15 different industry groups. Of the 68 bonds, we rated 36 'buy' as of September 9, 2025. We will update all of our best individual corporate bonds to buy now on October 9 during the quarterly Super Bondcast investment webinar.
Figure 1 provides a summary of our most recent 19 top bonds to buy. The table includes the pick date price, issuing company leverage ratio, and each bond's price and yield to maturity on September 9, 2025.
Key takeaways include:
- All 19 of Bondsavvy's most recent top bonds to buy have increased in price, with the bonds increasing over three points on average and six bonds increasing at least four points.
- The average yield to maturity of our most recent 19 recommended bonds to buy was 5.77% on September 9, 2025, nearly 5x higher than the recent 1.20% S&P 500 dividend yield.
- Corporate bond returns are not capped at a bond's yield to maturity. As shown in Figure 1, the average capital gain of the 19 recommended corporate bonds since their pick date was +3.19%.
- The bond recommendations include a variety of maturity dates, including 10 bonds maturing in 10 years or fewer; 4 bonds maturing between 11 and 19 years; and 5 bonds maturing in 20+ years.
- Fifteen of the nineteen recommended bonds to buy had issuing-company leverage ratios of 2.5x and less.
Figure 1: Bond Prices of Our Best Corporate Bonds To Buy 2025 -- Pick Date vs. September 9, 2025
|
Pick Date Offer Price |
September 9, 2025 Offer Price | Price Change (%) |
September 9, 2025 Offer YTM |
Issuer Leverage Ratio* |
September 4, 2025 Recommended Bonds to Buy | | | | | |
Bond Pick 1 | 90.95 | 92.74 | +1.97% | 5.82% | 2.0x |
Bond Pick 2 | 103.82 | 106.65 | +2.73% | 5.97% | 2.0x |
Bond Pick 3 | 98.16 | 98.45 | +0.30% | 5.43% | 2.3x |
Bond Pick 4 | 95.74 | 97.75 | +2.10% | 5.54% | 3.3x |
Bond Pick 5 | 88.00 | 89.85 | +2.10% | 8.89% | >4.0x |
| | | | | |
May 29, 2025 Recommended Bonds to Buy | | | | | |
Bond Pick 1 | 98.52 | 104.79 | +6.36% | 5.85% | 1.7x |
Bond Pick 2 | 104.19 | 106.84 | +2.54% | 4.90% | 1.7x |
Bond Pick 3 | 101.83 | 106.67 | +4.75% | 5.20% | 0.8x |
Bond Pick 4 | 101.37 | 105.55 | +4.12% | 4.72% | 0.8x |
Bond Pick 5 | 78.85 | 84.22 | +6.81% | 5.49% | 2.5x |
Bond Pick 6 | 99.36 | 102.38 | +3.04% | 4.83% | 2.5x |
| | | | | |
March 6, 2025 Recommended Bonds to Buy | | | | | |
Bond Pick 1 | 102.55 | 103.58 | +1.00% | 8.86% | 1.9x |
Bond Pick 2 | 99.39 | 102.56 | +3.19% | 5.13% | 3.0x |
Bond Pick 3 | 97.78 | 102.60 | +4.93% | 4.89% | 1.7x |
Bond Pick 4 | 98.84 | 102.51 | +3.71% | 5.26% | 2.4x |
| | | | | |
November 14, 2024 Recommended Bonds to Buy | | | | | |
Bond Pick 1 | 88.73 | 89.60 | +0.98% | 5.57% | 3.3x |
Bond Pick 2 | 89.00 | 91.10 | +2.36% | 7.55% | 1.4x |
Bond Pick 3 | 104.64 | 108.67 | +3.85% | 4.74% | 1.0x |
Bond Pick 4 | 96.90 | 100.59 | +3.81% | 4.92% | 1.5x |
| | | | | |
Average for all 19 recommended corporate bonds | | | +3.19% | 5.77% | |
Sources: Pricing data are from Fidelity.com. *Leverage ratios are Bondsavvy calculations based
on each company's most recent SEC filings as of June 26, 2025.
Why Own Our Best Corporate Bonds to Buy 2025
Owning individual corporate bonds enables investors to lock in high income for a specific time period and to
have the opportunity for capital appreciation. Individual corporate bonds also, at maturity, provide for a return of
the $1,000
face value for each bond you own. That said, we seek to achieve corporate bond returns that exceed a bond's pick date yield to maturity by using our active bond investing strategy.
Since corporate bonds are priced as a percentage of their face value, investors can evaluate a bond's price, YTM, and
credit spread and compare these metrics to the
bond issuer's financials. This financial analysis is the heart of the Bondsavvy subscription and enables us to identify bonds that can achieve
strong total returns over the long term. This analysis is not possible when investing in bond funds and ETFs, as we
discuss below.
A compelling alternative to money markets, CDs, and bond funds
In the June 2025 Fed dot plot, the US Federal Reserve
projected one point of additional interest rate cuts through 2026. Should this happen, popular money market funds such as Vanguard VMFXX
will see their yields fall in lockstep with the federal funds rate. In addition, since Vanguard VMFXX targets a net
asset value per share of $1.00, VMFXX cannot have capital appreciation. Some CD rates may currently seem attractive;
however, CDs often pay their income at the end of their term (compared to corporate bonds, which pay interest
semi-annually), can come with onerous call provisions, and lack capital appreciation opportunities.
Mega bond funds such as Vanguard VBTLX are not fixed income investments. They do not
pay a fixed coupon and do not return an investor's principal at maturity, as they do not have a maturity
date. Bond funds such as VBTLX own thousands of bonds, which drives muted (and often low) returns and makes
investors unable to build a portfolio that fits their investment objectives. Further, since bond funds and ETFs do
not trade relative to a par value and lack underlying financial metrics, investors cannot assess whether a
bond fund investment represents a compelling value.
Owning individual bonds vs. bond funds is the lowest-cost way to invest in bonds, as investors do not pay recurring fees based on a percentage of what they invest. In addition, bond funds incur significant trading costs. Bond funds do not disclose the amount of these costs and exclude them from the "expense ratio" fund managers, such as Vanguard, trumpet. By taking actions to limit our market impact, we have enabled our subscribers to purchase bonds at competitive prices and to maximize their corporate bond returns.
Why Own Corporate Bonds Now
We strongly advocate investors build bond portfolios over time; however, as of this update, there are several factors making now a compelling time to invest in individual corporate bonds:
- Investors seeking the best individual corporate bonds to buy now can can lock in high yields for the long term. In addition, since Bondsavvy's recommendations are highly selective, we can identify bonds that can increase in price and achieve strong total returns.
- The S&P 500 now trades near a 29x price-to-earnings (P/E) ratio compared to approximately 19x ten years ago, according to Gurufocus.com.
- The 30-day SEC yield for iShares IVV, the $667 billion ETF tracking the S&P 500, was 1.11% as of July 31, 2025, about one-fifth the average YTM of our 19 recommended bonds to buy 2025. Income investors can generate higher income with greater principal protection by owning individual corporate bonds vs. dividend stocks.
- Money market 7-day yields have fallen over one percentage point since September 2024, to 4.20% as of September 8, 2025. They could fall into the 3s should the US Federal Reserve cut rates further per the June 2025 Fed dot plot.
- Income distributions for bond funds and ETFs vary monthly and do not enable investors to lock in long-term income, as can be done with individual corporate bonds.
- Since bond funds and ETFs do not trade relative to par value and lack underlying financial metrics, investors cannot assess whether bond funds or ETFs are trading at compelling values.
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