Synlait's 11.25% bond yield is a flashing red light

Analysts seem guardedly optimistic. (Image: Synlait)

Wed, 03 May 2023

The high yield on Synlait Milk’s subordinated bond is a flashing red light but analysts seem guardedly optimistic about the long-term view. The $180 million five-year 2024 bonds – which have a face value of $1.00 – are currently yielding 11.25% with a coupon of 3.83%.Investors were already jittery, pushing the yield to 9.05% in early April after the company reported a weak first-half result.Anxiety, however, spiked after Synlait slashed its full-year guidance last week, almost exactly a month later. Highest yieldIt’...

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