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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 LQD . Conversely, lower-rated companies boasting higher yields showed modestly positive performance, as indicated by the iShares iBoxx $ High Yield Corporate Bond ETF HYG .
Also Read: Top 10 US High-Yield Corporate Bonds With Returns Over 20% In April 2024
Below is a list of U.S. corporate bonds that have exhibited the strongest performance in the last three months.10) Macys Retail Holdings LLC 4.3% 12/43 Issuer: Macys Inc. M ISIN: US55616XAJ63 Last price: $82.08 Yield to maturity (%): 5.9712 Maturity: 15/02/2043 Minimum investment amount: $2,000 3-month performance: 15.83% 9) Ally Financial Inc. 4.7% Issuer: Ally Financial Inc. ALLY ISIN: US02005NBN93 Last price: $78.174 Type: subordinated Minimum investment amount: $1,000 3-month performance: 16.91% Loading… Loading… 8) Lincoln National Corp. 7.938% 06/66 Issuer: Lincoln National Corp. LNC ISIN: US534187AS84 Last price: $74.73 Maturity: 17/05/2066 Minimum investment amount: $2,000 3-month performance: 17.87% 7) Carvana Co. 5.875% 20/28 Issuer: Carvana Co. CVNA ISIN: USU1468GAD61 Last price: $65.00 Yield to maturity (%): 18.1963 Maturity: 01/10/2028 Minimum investment amount: $2,000 3-month performance: 20.37% 6) Braskem America Finance Co. 7.125% 11/41 Issuer: Braskem S.A. BAK ISIN: USU1065PAA94 Last price: $90.85 Yield to maturity (%): 8.2834 Maturity: 15/02/2043 Minimum investment amount: $200,000 3-month performance: 20.5% 5) M.D.C. Holdings Inc. 3.966% 21/61 Issuer: M.D.C. Holdings Inc. MDC ISIN: US55616XAJ63 Last price: $82.08 Yield to maturity (%): 5.9712 Maturity: 15/02/2043 Minimum investment amount: $2,000 3-month performance: 23.53% 4) QVC Inc. 5.95% 13/43 Issuer: QVC Inc. ISIN: US747262AM52 Last price: $64.53 Yield to maturity (%): 10.4849 Maturity: 15/03/2043 Minimum investment amount: $1,000 3-month performance: 23.76% 3) At Home Group Inc. 4.875% 21/28 Issuer: At Home Group Inc. ISIN: USU04798AA90 Last price: $47.61 Yield to maturity (%): 27.4573 Maturity: 15/07/2028 Minimum investment amount: $2,000 3-month performance: 26.38% 2) Lumen Technologies Inc. 4.5% 20/29 Issuer: Lumen Technologies Inc. LUMN ISIN: USU1566PAD79 Last price: $36.32 Yield to maturity (%): 33.1453 Maturity: 15/01/2029 Minimum investment amount: $2,000 3-month performance: 27.01% Chart: Lumen Technologies Bond Outperforms Lumen Shares In 2024 1) Beyond Meat Inc. 0.000% 21/27 Issuer: Beyond Meat Inc. BYND ISIN: US08862EAB56 Last price: $23.87 Maturity: 15/03/2027 Minimum investment amount: $1,000 3-month performance: 28.08% 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 companys ability to fulfill its debt obligations, boosting investor confidence in Beyond Meats 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 stocks gains quickly dissipated, reversing the post-earnings uplift.
Since the beginning of the year, Beyond Meats zero-coupon bond, due to mature in March 2027, has seen a notable increase of 28%, contrasting with a roughly 6% drop in the companys share price.
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