Top 10 US Corporate Bonds By Market Performance In 2024: April Update

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).

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) Macy’s Retail Holdings LLC 4.3% 12/43

• Issuer: Macy’s Inc. (NYSE: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. (NYSE:ALLY)
• ISIN: US02005NBN93
• Last price: $78.174
• Type: subordinated
• Minimum investment amount: $1,000
• 3-month performance: 16.91%

8) Lincoln National Corp. 7.938% 06/66

• Issuer: Lincoln National Corp. (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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. (NASDAQ: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 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.

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Image generated using artificial intelligence via Midjourney.