While AMC Entertainment Holding Inc.’s shares have been hitting new lows over the last two week, the company’s bonds have seen net buying activity, as the following chart from data solutions provider BondCliQ Media Services shows.
“In the last two weeks the [AMC] bonds’ prices have really held their own while the stock has sold off,” a market source told MarketWatch. “It has been supported by better net buying over that period.”
Most active AMC Entertainment Holdings issues with net customer flow (last 10 days).
BondCliQ Media Services
“The bond market, in general, has seen very good demand coming into the year,” the market source added, as buyers anticipate expected cuts in interest rates. “People have been trying to lock in yields before the expected move lower in rates engineered by the Fed.”
Related: AMC shares slip below $4 as original meme stock hits all-time low
AMC’s
AMC,
shares have hit a series of lows recently, and fell below $4 to hit an all-time intraday low Friday. The stock registered another record closing low on Thursday, when it ended the session at $4.05.
A darling of the 2021 meme stock phenomenon, AMC’s shares hit an all-time closing high of $339.05 on June 2, of that year, according to Dow Jones Market Data.
But the market source told MarketWatch that the meme buyers were never in the bond market. “The bonds were never a meme play,” the source said.
Related: AMC bonds see bullish activity while meme-stock darling rides the Taylor Swift wave
The following chart also shows the two-week price performance of certain AMC bonds.
Two-week price performance of select AMC bonds.
BondCliQ Media Services
AMC shares have fallen 92.6% in the last 52 weeks, compared with the S&P 500
SPX
index’s gain of 19.6%.
This story originally appeared on Marketwatch
