This is why a lot of HNWs are leveraging to buy bonds to earn the spread since 2009. But the priority banking customers are also getting into the act since 2012 (that's about the time i started hearing people in priority banking segment talk about leverage on bonds).Best time to buy bonds is when there is some sort of crisis (these 4 years quite frequent) where the bonds prices will go down (ie yield goes up). This is the example of carry-cost versus the coupon yield and the spread you getting (excluding any capital gain you might get from buying under-par bonds). Remember to assess the company behind the bonds, the type of bonds offered and not to over-leverage. For safety sake, you can use 50% LTV instead of 80% or even 90%. But  the returns can be outsized(in the realm of 40% pa) if you take a 80% ...