Wayfair's 11% Yielding Debt Is Too Risky

Feb. 01, 2023 2:47 PM ETWayfair Inc. (W)4 Comments
Jeremy LaKosh profile picture
Jeremy LaKosh


  • With the rally of Wayfair shares has also come the rally of its convertible debt.
  • The company burned a significant amount of cash in the first three quarters of 2022.
  • Wayfair's revolving line of credit may be tapped and its debt covenants could provide additional hindrance.

Risk management and mitigation to reduce exposure for financial investment, projects, engineering, businesses. Concept with manager"s hand turning knob to low level. Reduction strategy.


Wayfair (NYSE:W) stock has seen quite a bit of volatility recently. Despite being up over 70% in the last month, shares are still down 60% from this time a year ago. The company's low coupon debt has also been on a wild ride, with

Wayfair Bond Issuances


Wayfair Income Statement

SEC 10-Q

Wayfair Balance Sheet

SEC 10-Q

Wayfair Cash Flow

SEC 10-Q

Wayfair Note Share Conversion

SEC 10-Q

Wayfair Debt Composition

SEC 10-Q

Wayfair Revolving Line of Credit

SEC 10-Q

Wayfair Debt Covenants

SEC 10-Q

This article was written by

Jeremy LaKosh profile picture
About My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds.  I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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