Synlait's bond may be risky but it could pay off

Synlait Milk's CEO upbeat about debt reduction. (Image: Synlait)

Wed, 28 Sep 2022

Synlait Milk’s high-yielding subordinated bond could turn out to be a windfall for investors if everything pans out for the milk company, but it's not without risk.The $180 million five-year 2024 bonds – which have a face value of $1.00 – are currently yielding 8.25% with a coupon of 3.83%.Investors who buy into it today would earn 3.83% and stand to get $8.727 for every $100 when the bond matured, if all went well. Given inflation, it's an attractive return, but traders said the high yield equalled high risk.&nbs...

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