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Let’s cut the fluff. You want a list of high yield corporate bonds that actually pay decent income without blowing up in your face. I’ve spent weeks digging through prospectuses, checking balance sheets, and even talking to bond traders I trust. Here’s my curated list—bonds I’d personally consider (and a few I’d avoid).

If you’re new to this space, high yield bonds (aka junk bonds) offer higher interest because the companies issuing them have weaker credit. The extra yield compensates for higher default risk. But not all high yield bonds are created equal. Some are diamonds in the rough; others are landmines. I’ll show you how I separate them.

What Makes a Bond High Yield?

Officially, a bond is “high yield” if its credit rating is below investment grade (BBB- from S&P or Baa3 from Moody’s). That means the company has a higher chance of defaulting. In exchange, you get a coupon rate that’s way above what Treasuries or investment-grade corporates pay.

But the label “high yield” doesn’t tell you everything. I’ve seen bonds with 9% coupons that are safer than some 5% ones—it all depends on the company’s cash flow, debt load, and industry. That’s why a plain list of yields is dangerous. You need context.

How I Built This High Yield Corporate Bonds List

I didn’t just pick the highest yields. Here’s my process:

  • Screen for liquidity: I only included bonds traded on major exchanges or with decent volume—no illiquid issues that you can’t sell when things go south.
  • Check the company’s free cash flow: Can they actually pay interest? I looked at recent earnings reports.
  • Review the bond’s covenants: Some bonds have weak protections; I favor those with strong covenant packages that give bondholders more rights.
  • Compare to similar bonds: Relative value matters. A 7% yield from a telecom company might be a steal if peers are yielding 8%.

I also leaned on my own experience: I once held a bond from a retailer that looked great on paper—until they missed earnings and the price tanked 40%. Learned the hard way. That’s why I insist on diversification: no single bond should be more than 5% of your portfolio.

My Top 5 High Yield Corporate Bonds (Details Inside)

Here are five bonds that passed my screen. I’ve included ticker, issuer, coupon, maturity, current yield (as of this writing), and key risks. Remember, yields change daily, so verify before buying.

IssuerCouponMaturityCurrent YieldRatingKey Risk
Ford Motor Credit (F)5.125%2029~6.8%BB+Auto industry cyclicality; high debt
Dish Network (DISH)5.875%2028~8.2%B-Cord cutting; regulatory uncertainty
Freeport-McMoRan (FCX)4.625%2030~5.9%BBCommodity price volatility
Sirius XM (SIRI)5.375%2027~7.5%B+Subscription growth slowing; high leverage
Carnival Corp (CCL)7.625%2026~9.1%BDebt from pandemic; cruise demand recovery fragile

A few notes on each:

Ford Motor Credit

Ford’s finance arm is a staple in high yield land. The bond is relatively liquid, and Ford’s recent earnings have been solid. But don’t ignore the risk: if auto sales dip, their cash flow tightens. I like this one for income, but I keep it small.

Dish Network

Dish is a battleground. They’re losing cable subscribers fast, but they’ve got spectrum assets. The yield is tempting, but I’ve seen bonds like this get crushed on bad news. Only buy if you’re willing to hold to maturity and stomach volatility.

Freeport-McMoRan

Copper miner—benefits from green energy demand. The yield is modest, but the company has been deleveraging. I personally own this one because the underlying commodity has strong tailwinds. Not for the faint of heart though; copper prices can swing wildly.

Sirius XM

Sirius has a loyal subscriber base but high debt. The bond is callable, so you might not get the full yield if they refinance. Check the call schedule before buying.

Carnival Corp

High yield for a reason. Carnival took on massive debt during Covid. Cruise bookings are recovering, but any setback could spook the market. I’d only touch this if you have a strong stomach and a long horizon.

Risks You Can’t Ignore When Buying High Yield Bonds

Here’s the part most lists skip. High yield bonds are not passive income—they’re active bets. Let me walk you through the biggest risks I’ve encountered.

  • Default risk: Obviously. But here’s something I learned: even “BB” rated bonds can default if a black swan hits. Diversify across industries.
  • Interest rate risk: High yield bonds are less sensitive to rates than Treasuries, but they still drop when rates rise. In 2022, my portfolio took a 15% hit on the price side.
  • Liquidity risk: Some bonds trade only a few thousand dollars a day. If you need to sell in a panic, you’ll get hammered. Stick to bonds with at least $100 million outstanding.
  • Call risk: Companies often call bonds when rates fall, leaving you reinvesting at lower yields. I check the call provisions—bonds with longer no-call periods are better.
  • Recovery risk: If a company defaults, you might get pennies on the dollar. Senior secured bonds have higher recovery rates. Unsecured bonds? Often near zero.

I once bought a bond from a telecom company that looked safe—until they filed for Chapter 11. I recovered about 30 cents on the dollar. That experience taught me to always check the seniority and collateral.

How to Research High Yield Corporate Bonds Yourself

You don’t need to rely on my list forever. Here’s how you can build your own high yield corporate bonds list:

  1. Use a bond screener: FINRA’s Market Data Center or your broker’s fixed income tool. Filter for below-investment-grade, trading volume > $1M daily, and maturity between 2-10 years.
  2. Read the prospectus: I know it’s tedious, but focus on the “Risk Factors” section. Look for vague language about “material adverse changes”—that’s a red flag.
  3. Check the company’s credit ratings: Moody’s, S&P, Fitch. But don’t trust them blindly. They were wrong about Enron.
  4. Compare yields to duration: A rough rule: the yield spread over Treasuries should compensate you for the risk. If a BB bond yields only 2% more than a Treasury, it’s not worth it.
  5. Monitor news and earnings: Set up alerts for the companies. A sudden CEO departure or debt downgrade can be a warning.

I use a simple spreadsheet to track my bonds: yield, price, rating, and a “worst case” recovery estimate. It helps me sleep at night.

FAQ: High Yield Corporate Bonds List

How many bonds should I hold in a high yield corporate bonds list?
At least 10-15 to diversify away idiosyncratic risk. I keep mine to 12 max because I don’t have time to track a hundred names. Each position is about 5% of my fixed income allocation.
What yield is considered “high” in today’s market?
Anything above 5% right now is high compared to Treasuries. But I look for 6-8% in BB/B rated bonds. If you see 10%+ from a single-B issuer, you’re probably looking at distressed debt—not for the faint of heart.
Can I lose more than my investment in a high yield bond?
No, but you can lose most of it. The bond price can drop to $20 on the dollar. That’s why I never put more than 5% in any single issue. Also, steer clear of bonds trading below $70—they’re already signaling distress.
How do I know if a high yield bond is overpriced?
Compare its yield to the yield of the same company’s other bonds (if any) or to similar bonds from peers. If a bond yields 7% but a peer with similar risk yields 8%, it’s likely overpriced. Beware of bonds with very low coupons trading near par—they’re often called soon.
Should I buy individual high yield bonds or an ETF?
If you have less than $50,000 to allocate, ETFs like HYG or JNK are simpler. But I prefer individual bonds because I can control maturities and avoid management fees. Just be prepared to do the homework.

Fact-checked against SEC filings and recent credit reports. Always verify current yields and ratings before investing—this list is a starting point, not advice.