Bonds in 2026: how to compare yields, ratings and maturities

Updated: 19 October 2026

Anyone looking for the best bonds in 2026 faces a complex market: Italian and European government bonds, corporate bonds, short-term issues and instruments with maturities of more than ten years.

But how do you compare different bonds objectively?

The starting point is to consider yield to maturity, credit risk, maturity and purchase price at the same time. A higher yield, on its own, does not necessarily indicate better terms.

1. Yield to maturity: the first indicator

The yield to maturity (YTM) is the rate that makes the purchase price equal to the present value of the future cash flows provided for by the security.

Unlike the nominal coupon, the yield to maturity also takes into account the effect of the price paid and of the final repayment.

For example, a bond with a 3% annual coupon bought below par can offer a yield to maturity above 3%.

Conversely, if the same bond is bought above par, the yield to maturity can be lower than the coupon.

The calculated yield assumes that the contractual cash flows are paid and that the security is held until maturity. It is not a guaranteed return.

2. Bond ratings: how to interpret risk

Rating agencies classify the credit quality of issuers.

In general, bonds are divided into two broad categories:

Category	Indicative S&P rating	Characteristics
Investment grade	From AAA to BBB−	Relatively higher credit quality
Speculative grade	From BB+ to D	Generally higher credit risk

The rating provides an assessment of creditworthiness, but it does not eliminate the risk of default.

Even two bonds with an identical rating can show important differences in yield, liquidity, subordination and maturity.

3. Which maturity to compare: 3, 5, 7 or 10 years?

The remaining maturity is an essential parameter.

Bonds with a more distant maturity tend, all other conditions being equal, to be more sensitive to changes in interest rates.

This sensitivity is measured by duration.

It is important to distinguish:

• Remaining maturity: the time left until contractual repayment.
• Duration: a measure of the sensitivity of the price to changes in market yields.

A bond with a remaining maturity of ten years does not necessarily have a duration of ten years.

To compare different securities, it is therefore useful to examine both maturity and duration.

4. BTPs and corporate bonds: what are the differences?

BTPs are debt securities issued by the Italian state.

Corporate bonds are issued by companies and can belong to different sectors, such as industry, telecommunications, energy or financial services.

Feature	BTP	Corporate bonds
Issuer	Italian state	Company
Credit risk	Linked to the Italian state	Linked to the issuer and to the structure of the security
Coupons	Depend on the type of BTP	Depend on the terms of issue
Ordinary Italian taxation	Generally 12.5% on relevant income	Generally 26%, with exceptions
Liquidity	Varies by issue	Varies by issue

The higher yield of a corporate bond can reflect higher credit risk, lower liquidity or other contractual features.

5. Five elements to check before comparing two bonds

A comparison should include:

1. Yield to maturity: how much the market price pays, according to the assumptions of the calculation.
2. Rating and credit risk: what the credit quality of the issuer is.
3. Maturity and duration: how long the investment lasts and how the price may react to interest rates.
4. Liquidity: how easy it may be to sell the security before maturity.
5. Costs and taxation: what the impact on the return actually obtained may be.

6. How to compare bonds more simply

Rather than looking at dozens of instruments one by one, a comparison platform can organise the information using consistent criteria.

With our tool you can select two parameters:

• Risk level.
• Desired maturity.

The system returns a comparative selection of ten bonds, with information on yields, ratings and maturities according to a documented methodology.

Compare bonds

Frequently asked questions

Are the bonds with the highest yield also the best value?

Not necessarily. High yields can reflect higher credit, liquidity or structural risks.

Can you lose money with an investment grade bond?

Yes. The rating does not guarantee repayment and the market price can fall.

What happens if I sell before maturity?

The selling price depends on market conditions at that moment. The investor may realise a capital gain or a capital loss.

Are yield to maturity and coupon the same thing?

No. The coupon is the contractual periodic payment; the yield to maturity also takes into account the purchase price and the expected cash flows up to repayment.

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Sources: Borsa Italiana — Guide to BTPs; CONSOB — Documentation on bond yields.

This information is for informational and educational purposes only. It does not constitute a personalised investment recommendation. Yields and ratings may change over time.