Which bonds of safer companies offer high returns

Frankfurt A yield of almost six and a half percent for a bond from Telefónica, 5.7 percent for a bond from Volkswagen, 4.5 percent for a bond from Total: These are eye-catchers in the current interest rate environment, especially because the companies have good to very good credit ratings.

For comparison: German government bonds with a term of five years only yield a good one percent despite the interest rate turnaround. And conventional five-year bonds from VW, Telefónica and Total only yield between two and three percent.

But the Spanish phone company, the German carmaker and the French oil company also have bonds on offer that offer yields about twice as high: subordinated or hybrid bonds. These bonds are more uncertain than conventional bonds in terms of the timing of interest payments, the term and the position of the creditors. But the risks can be limited. The Handelsblatt explains which companies are still offering these bonds – and what experts advise.

Safer than junk bonds