date:May 19, 2014
n a strong credit profile, they would need to prioritize between shareholder remuneration and protecting the credit profile.
Tescos pound bonds included in the Bank of America Merrill Lynch BBB sterling corporate non-financial index handed investors 4.4 percent this year, compared with an average of 5.7 percent among the top 50 issuers.
Investors demand 157 basis points more yield to hold Tesco bonds maturing in 2023 than benchmark government debt, versus an index average of 144 basis points.