FYI: Kraft Heinz (ticker: KHC) has become one of the rare cases in which a company’s bondholders are more optimistic than its shareholders.
The company’s shares dropped 27% on Friday after the packaged-foods giant released a fourth-quarter earnings report that was rife with bad news: Disappointing earnings guidance, a regulator subpoena, a 36% dividend cut, and a $15 billion write-down on the value of brands such as Oscar Mayer and Kraft.
But its creditors don’t seem as worried, and the company’s bonds recovered half of their morning losses by midday. And Kraft Heinz bonds are still trading like investment-grade securities, investors say.
Regards,
Ted
https://www.barrons.com/articles/kraft-heinz-bondholders-are-more-upbeat-than-shareholders-51550919600?refsec=bonds
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