From Bloomberg:
The online retailing giant’s pledge to slash prices at newly acquired Whole Foods Market Inc. has pushed up borrowing costs across the board for U.S. food retailers. The yield on a Bank of America Merrill Lynch Index of U.S. grocery companies jumped 11 basis points last week to the highest in more than a month
and later in the article:
Here are some of the bonds that were worst hit by the news:
The Fresh Market Inc.’s $800 million of bonds due 2023 slumped 3.13 cents on the dollar last week to a record low of 77.89 cents
The yield on Albertsons Cos. Inc.’s $1.2 billion of bonds due in 2025 jumped 28 basis points to 7.32 percent
The yield on B&G Foods Inc.’s $500 million of bonds due in 2025 climbed 4 basis points to 4.7 percent
As someone who never went to business school, I'd love an ELI5 on why borrowing costs rise organically in response to margins getting crushed?
Submitted August 28, 2017 at 11:59AM by Squidssential http://ift.tt/2wWTH8m
