Bonds of Bed Bath & Beyond Collapse on Bankruptcy Fears as Suppliers with Unpaid Bills Halt Shipments | Wolf Street

Not being able to pay suppliers is getting very close to the endgame. And the bond market knows that a lot better than the meme-stock crowd.

The $225 million of senior unsecured 20-year notes that Bed Bath & Beyond issued in 2014, due in 2034, with a coupon interest of 4.915%, collapsed to a new low of 16 cents on the dollar today.

That would be a yield of 34%, assuming that the company even pays the interest for the life of the bond which the bond market assumes is very unlikely (chart by FINRA/Morningstar)

Bonds of Bed Bath & Beyond Collapse on Bankruptcy Fears as Suppliers with Unpaid Bills Halt Shipments | Wolf Street