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Bond Market News
Best and Worst Performing Issuers and Bonds in 2024
December 19, 2024
In this piece, we take a look a the top gainers and losers in 2024 and the reasons behind their moves. The table below shows the list of the top gainers and losers among issuers/companies.
Top Gainers
Lumen’s bonds, with a median return of 112.5%, were the top gainers in the year. Its bonds started rallying after the company announced a strategic partnership with Microsoft in July. Lumen’s bonds continued their rally further on the back of several positive news like partnership announcement with Amazon, rating upgrades and tender offer announcement.
Bonds of Shui On were the second best performer during the year with the median return of 66.6%. Shui On’s notes rallied after there was market talk of the company planning to issue a dollar bond, following which they priced the note. Also, the Chinese Government announced a stimulus package for the struggling real estate sector and eased home purchasing rules, helping in a rally across several Chinese developers’ notes.
With the median return of 55.3%, Buenos Aires’ bonds were the third best performers in 2024. The gains came on the back of Argentina getting clearance from the IMF for $800mn of funds and negotiating a $2.7bn loan with banks like Banco Santander and JPMorgan to meet its debt obligations.
GLP China’s notes were another top performer during the year, resulting mainly from the China announcing state-support measures for the real estate sector and the company launching a tender offer for its 2025s.
Vedanta was also among the top gainers, with a median return of 46.8%. The outperformance came after the company completed its debt restructuring early in January post which it also did a QIP to pay back KCM creditors. The company also got multiple upgrades by the rating agencies during the year after it priced new bonds in September and November and bought back its higher interest bearing debt.
Bonds of WAPDA, the utility company owned by the Pakistan government, with a median return of 43.2% also rallied on the back of the sovereign’s outperformance. The sovereign outperformance resulted from the nation securing support from the IMF and bilateral creditors along with rating upgrade by Moody’s and Fitch.
Fosun’s dollar bonds witnessed a median return of 34.1%, on the back of the sale of non-core assets by the company to repay its debt obligations amid further progress.
Rakuten’s bonds with a median return of 28.4% also outperformed after it launched a dollar bond and it was reported that the company was considering a reorganization of its fintech businesses into one group to strengthen collaboration.
Other notable top gainers include bonds of Braskem Idesa and SBL with a median return of 31.2% and 22.5% respectively.
Top Losers
Xerox’s bonds, with a median return of -20.3% were the top losers during the year. The underperformance was a result of weak operating performance by the company, resulting in rating downgrades by Moody’s and S&P.
With a median return of -12.4%, Gol bonds were among the worst performers, after the company filed for Chapter 11 bankruptcy protection in January, and reported large losses during the year.
Gazprom’s bonds with a median return of -11.9% also underperformed during the year as a result of company reporting its worst loss in two decades.
Bonds of both Hertz and Intel witnessed a median return of -9.9% during the year. Hertz bonds came under pressure after it was downgraded by S&P to B earlier in June. Intel’s bonds underperformed after it was downgraded by Fitch and S&P on the back of weak operating results reported by the company.
Vanke’s bonds remained volatile throughout the year ending with a median return of -9.9%. Initially its bonds came under pressure after the company was said to be in talks for debt restructuring and downgrades by the rating agencies. Its bonds recovered some of the losses after reports of asset sales by the company and the talks for financing. Post that, its bonds again dropped when the company reported its first interim loss in two decades, but recovered soon after the stimulus package announcement by China in late September.
Road King’s bonds witnessed a median return of -9.6% during the year and the company deferred the coupon payments on its 7% and &.7.75% Perp.
Bonds of another HK developer, New World Development (NWD) also remained volatile during the year. Its bonds started to rise after company sold its non-core assets and purchased back some of its notes. However, its notes witnessed a sharp drop after the company warned of annual loss in 2024, recovering to some extent, thanks to the supportive measures by China, thereby ending the year with a median return of -5.9%
Other notable losers included Embarq, and Microsoft bonds with a median return of -16.6% and -3.7% respectively.
We have further analyzed the performance of European Bank AT1s, Sovereign Bonds and the overall bond markets in 2024. Click on the links below to access the reports.
Performance of European Bank AT1s
Performance of EM and Frontier Sovereign Dollar Bonds
Bond Markets in 2024
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