As the stocks of the “Magnificent Seven” group of Big Tech stocks have sold off in the past few weeks, their bonds have also taken a hit, with spreads widening and net buying turning into net selling.
The following chart from data-solutions provider BondCliQ Inc. illustrates the movement in spreads, with the yellow arrow tracking the move wider. One caveat: Only six of the group have outstanding bonds; Tesla Inc. is the outlier, after issuing convertible bonds in the past that have long since been converted to stock.