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Category: Spotlight
Meta Platforms, Inc.: Click “like” for good risk reward value
Do you find yourself spending precious time scrolling through Facebook and Instagram? Why not accrue interest while you’re at it?
By Metrobank
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Meta Platforms, Inc. (META) is a relatively new US dollar bond issuer with its first bond deal in August 2022. It has returned to the market in 2023 with an USD 8.5-billion issuance across 5-, 7-, 10-, 30-, and 40-year maturities.
The company is rated A1/AA- by Moody’s and S&P, respectively. Its high cash balance and low overall leverage is the likely reason for its high-grade rating.
We see META as a relative value pick over ROPs (Philippine government bonds) as META bonds offer higher yields to ROPs despite having a higher credit rating.
USD Credit Strategy:
- US dollar yields have settled within a range as expectations of tighter credit conditions from the ongoing regional bank crisis in the US have capped expectations for higher rates. This despite economic data still pointing towards