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Amazon's Opening Salvo in Grocery Price War Hits Bond Market
- Yield on BofA index of food companies climbs to one-month high
- U.S. grocers Fresh Market, Albertsons among bonds hardest hit
Amazon to Slash Prices, Offer Services at Whole Foods
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Amazon.com Inc.’s acquisition of Whole Foods Market Inc. isn’t just slashing prices on organic avocados. It’s also making it more expensive for some of the grocery store chain’s rivals to borrow.
The online retailing giant’s move to make it cheaper to shop at newly acquired Whole Foods sent bond prices for some U.S. food retailers to record lows. The yield on a Bank of America Merrill Lynch Index of U.S. grocery companies jumped 11 basis points last week to the highest in more than a month.