Kraft Heinz Bonds Lead Declines in High-Grade Index on Writedown
- Spread on most actively-traded debt widens 18 basis points
- Company holds lowest investment-grade rating from two firms
Photographer: Kevin Lorenzi/Bloomberg
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Kraft Heinz Co.’s bonds were among the biggest losers in the investment-grade index Friday after reporting disappointing fourth-quarter earnings, headlined by a $15.4 billion writedown on some of its best-known brands.
The risk premium on one of the company’s most-traded bonds, the 3 percent notes due 2026, widened 18 basis points, or 0.18 percentage point, to 163 basis points over Treasuries, according to Trace bond price data. The cost to protect the bonds against a default for five years in the derivatives market surged as much as 36 basis points, the most since 2013 before Kraft and Heinz combined.