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Max Manturov

Max Manturov

Head of investment research regulated by CySec 10.09.2021

5 ideas for investing in safe bonds (investment grade)

Bonds are moderately volatile, but even with reduced risk, there are a number of indicators to consider when choosing securities for the portfolio. Our analysts have selected 5 promising corporate bonds in dollars, focusing on debt metrics; a measure of each company's creditworthiness and reliability. 

ENEL CHILE SA (rated BBB+)

ISIN: US29278DAA37
Current price in %: 115,37
Face Value: $1000
Coupon yield: 4,875%
Maturity date: 12.06.28
Next call: 13.03.28
Yield to maturity date: 2,323%
Coupon type: fixed
Amount Outstanding (mln.): $1000
Housing and Utilities Sector


The Chilean electric power company serves customers all over the world. ENEL CHILE SA operates in the generation, transmission and distribution of electric energy. The portfolio also includes renewable energy projects.

Debt level:

  • Cash and equivalents: $436 million
  • Debt to equity ratio: 53.76%
  • Net debt/EBITDA for the last 12 months: 1.73x
  • EBIT/interest coverage for the last 12 months: 9.45x
  • Free cash flow, last 12 months: $47.57 million

Buy ENEL CHILE SA Bonds >>

British Telecommunications PLC (BBB)

ISIN: US111021AL54
Current price in %: 118,38
Face Value: $1000
Coupon yield: 5,125%
Maturity date: 04.12.28
Yield to maturity date: 2,271%
Coupon type: fixed
Amount Outstanding (mln.): $700
Telecommunication services sector


BT Group plc (formerly British Telecom) is an international telecommunications holding company with a presence in over 180 countries. BT Group plc is the largest provider of fixed-line, broadband and mobile services in the UK. The company also provides its customers with IT services and subscription television. The company's bonds are listed on the FTSE 100 index of the British Stock Exchange.

Debt level:

  • Cash and equivalents: $6486 million
  • Debt to equity ratio: 192.6%
  • Net debt/EBITDA for the last 12 months: 2.40x
  • EBIT/interest coverage for the last 12 months: 3.23x
  • Free cash flow, last 12 months: $2013 million 


Buy British Telecommunications PLC Bonds >>

ENI SPA (A-)

ISIN: XS1826622240
Current price in %: 116,99
Face Value: $1000
Coupon yield: 4,750%
Maturity date: 12.09.28
Yield to maturity date: 2,132%
Coupon type: fixed
Amount Outstanding (mln.): $1000
Oil and gas industry sector


Eni is an Italian oil and gas company, one of the largest in the world. Eni operates in 66 countries, with its main production regions being Africa, Russia and Kazakhstan, and its main markets are Italy and other European countries. The Italian government holds a significant stake in the company. Eni is currently listed on the Euro Stoxx 50 stock market index.

Debt level:

  • Cash and equivalents: $19.11 billion
  • Debt to equity ratio: 78.92%
  • Net debt/EBITDA for the last 12 months: 1.26x
  • EBIT/interest coverage to interest for the last 12 months: 3.09x
  • Free cash flow, last 12 months: $2751 million


Buy ENI SPA Bonds >>

TENCENT HOLDINGS LTD (A+)

ISIN: US88032XAG97
Current price in %: 108,45
Face Value: $1000
Coupon yield: 3,595%
Maturity date: 19.01.28
Next call: 19.10.27
Yield to maturity date: 2,117%
Coupon type: fixed
Amount Outstanding (mln.): $2500
Software and IT Services Sector


Tencent Holdings is one of the largest investment and venture capital firms in the world headquartered in China. Tencent Holdings and its subsidiaries specialise in various areas of high-tech business, including developments in artificial intelligence and digital entertainment. Tencent's services include social networks, music and web portals, e-commerce tools, payment systems, mobile and online games, and cloud databases. The company also owns the most popular messengers in China; Tencent QQ and WeChat.

Debt level:

  • Cash and equivalents: $33.60 billion
  • Debt to equity ratio: 33.12%
  • Net debt/EBITDA for the last 12 months: 0.29x
  • EBIT/interest coverage for the last 12 months: 37.52x
  • Free cash flow, last 12 months: $23.23 billion


Buy TENCENT HOLDINGS LTD Bonds >>


ALIBABA GROUP HOLDING (A+)

ISIN: US01609WAT99
Current price in %: 108,77
Face Value: $1000
Coupon yield: 3,400%
Maturity date: 06.12.27
Next call: 07.09.27
Yield to maturity date: 1,852%
Coupon type: fixed
Amount Outstanding (mln.): $2550
Software and IT Services Sector


Alibaba Group is one of the largest Chinese companies operating in the field of online commerce. Its portfolio includes Taobao.com, Tmall, Alibaba.com and a number of other trading platforms. Alibaba Group specialises in B2B trading and online retailing. It also owns one of the world's largest cloud computing infrastructures and media and entertainment assets. As of 2020, Alibaba was the sixth largest global brand.

Debt level:

  • Cash and equivalents: $74.85 billion
  • Debt to equity ratio: 15.31%
  • Net debt/EBITDA for the last 12 months: -
  • EBIT/interest coverage for the last 12 months: 19.11x
  • Free cash flow, last 12 months: $27.75 billion

Buy ALIBABA GROUP HOLDING Bonds >>

How Do I Buy Bonds?

If you do not already have an investment account, open it right now - you can do it online in 10 minutes. To do this, all you need to do is fill out a short questionnaire and go through verification.

After opening an account, you can buy bonds in these convenient ways:

1. Via the Freedom24 web-based trading platform. Search for ISIN bonds in the "Web Terminal" section. From the search results, select the company you want. Next, open a securities section in the trading window (on the right), pick the needed amount of bonds, and click the "Place a buy order" button.

2. Via the Freedom24 app for iPhone App and Android. In the "Quotes" window, click the search icon in the upper right corner. In the search window, type the company's ISIN and then choose the needed company from the list of results. Click on it and select the "Order" tab in the opened card. Specify the required number of bonds and click the "Place a buy order" button.     


*Additional information is available upon request. Investment in securities and other financial instruments always involves risks of capital loss. The Client should make himself aware at his own accord, including to familiarize himself with Risk Disclosure Notice. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Commissions, fees or other charges can diminish financial returns. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and do not constitute an investment advice service. The recipient of this report must make their own independent decisions regarding any securities or financial instruments mentioned herein. Information has been obtained from sources believed to be reliable by Freedom Finance Europe Ltd or its affiliates and/or subsidiaries (collectively Freedom Finance). Freedom Finance Europe Ltd. do not warrant its completeness or accuracy except with respect to any disclosures relative to the Freedom Finance Europe Ltd. and/or its affiliates and the analyst’s involvement with the issuer that is the subject of the research. All pricing is indicative as of the close of market for the securities discussed, unless otherwise stated.

  • Sources of information


  • Recommendation evaluation methodology in accordance with Terms and Conditions of Market Research Use
    Freedom Finance analysts perform a three-stage analysis. They select a promising industry based on the latest news, statistics and industry-specific metrics. They assess the supply and demand situation and its future development dynamics. Industry’s investment attractiveness is mostly affected by the forecasted market growth rates; total addressable market, player concentration level and likeliness of a monopoly formation, as well as the level of regulation by various entities or associations.

    The assessment is followed by the comparative analysis based on the selected sample. The sample comprises companies with a market capitalization of over USD 1 billion, but there is space for exceptions (when the suitable level of liquidity for company’s securities is available on the stock exchange). The selected companies (peers) are being compared against each other based on multipliers (EV/S, EV/EBITDA, PE, P/FCF, P/B), revenue growth rates, marginality and profitability (operating income margin, net income margin, ROE, ROA), and business performance.

    Having completed the comparative analysis, the analysts carry out a more in-depth research of the news about the selected company. They review company’s development policy, information about its current and potential mergers and acquisitions (M&A activity), and assess the efficiency of company's inorganic growth and other news about it over the past year. The main objective at this stage is to identify the growth drivers and evaluate their stability, as well as the extent of impact they have on the business.

    Based on all the data collected, the analysts determine the weighted forecasted figures of company’s growth rates and proposed business marginality, which are used to calculate the company’s multiplier-based estimated value. The said value enables setting the stock price target and stock value growth potential.

    The expected timing of the idea implementation is set depending on the current market situation, volatility level and available forecasting horizon for industry and company development. The forecasting period is normally set between 3 and 12 months.