Top 10 US Corporate Bonds By Market Performance In 2024: April Update
Author: Piero Cingari | April 05, 2024 10:09am
The performance of the U.S. corporate bond market in the first quarter of the year was generally flat, though there were notable distinctions between the high-grade and high-yield sectors.
Bonds issued by companies with higher credit ratings (BBB and above) experienced a slight downward trajectory, as showed by the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:LQD). Conversely, lower-rated companies boasting higher yields showed modestly positive performance, as indicated by the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG).
Chart: Beyond Meat Bonds Outperform Shares In 2024
Why Have Beyond Meat Bonds Outperformed Shares?
Beyond Meat reported higher than expected revenue in the fourth quarter of 2023, yet suffered larger losses than anticipated. Following the earnings announcement, the company committed to significantly cutting costs and enhancing manufacturing efficiency.
These efforts improved the outlook on the company’s ability to fulfill its debt obligations, boosting investor confidence in Beyond Meat’s survival prospects, rather than reflecting a true turnaround in its long-term profitability.
Following its earnings report, Beyond Meat saw an initial market enthusiasm with rises in both bonds and shares. However, while bond values maintained their upward trajectory, the stock’s gains quickly dissipated, reversing the post-earnings uplift.
Since the beginning of the year, Beyond Meat’s zero-coupon bond, due to mature in March 2027, has seen a notable increase of 28%, contrasting with a roughly 6% drop in the company’s share price.