Crypto and meme corporate bonds may follow their own path
— Path, Bonds, Follow, Companies, Netflix, Amc, Cent, Corporate, Crypto, Negative, Bond, Meme, Excess, Return, Coinbase — 1 min read
Netflix bond maturing in 2030 has returned a negative 19 per cent from recent peaks. AMC’s excess return from its June 2021 peak was negative 14 per cent. Netflix bond market appears relatively more comfortable with the financial strength of Netflix. But the bond market seems to be more sceptical about the company's financial prospects. The writer is a bond portfolio manager at Barksdale Investment Management and co-author of ‘Undiversified: The Big Gender Short in Investment Management’ He says the sky-high growth forecasts that drove Netflix, Coinbase and AMC stocks to their peaks simply can’t get priced into their bonds. He asks: ‘Who knows where the bonds of these companies will be a year from now? Source