Dean Sinks the Most Among Food Bonds
- Milk maker has handed bondholders 21% loss since late February
- Stock is also worst performer among U.S. packaged food makers
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Investors are betting there’s no easy fix for Dean Foods Co., with the top U.S. dairy company’s bonds sinking deeper into distressed territory amid a long-term decline in American milk demand.
The bonds have handed investors a 21 percent loss since late February when the Dallas-based company reported a wider-than-expected quarterly loss and said it’s looking at alternatives that may include a sale. That’s by far the worst performance among 61 food and beverage issuers tracked by Bloomberg globally. On average, the group gained 0.9 percent. The company’s shares have done even worse in the same span, plunging 46 percent.