Kraft Heinz Bondholders Position for Company’s Potential Split

Kraft Heinz Co.’s bond investors are positioning for what the company will do next as it considers spinning off its slower-growing brands, looking for probable losers and winners.

The company is weighing a split that could separate off a large part of its grocery segment and leave behind its faster-growing sauces units, Bloomberg reported on Friday, plans that are still being finalized but that could be announced in the coming weeks.

Some of the company’s bonds have weakened relative to Treasuries since then, with the news raising questions about whether the debt could end up at a lower-margin business. ...