• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

June 19 (Bloomberg) -- The rally in high-yield, high-risk bonds may have spawned its first dividend deal in two years. Wendy's/Arby's Group Inc., which issued $565 million of 10 percent notes due in 2016 yesterday, will use the proceeds to repay debt and make a "distribution," potentially for dividends and stock repurchases, the Atlanta-based company said yesterday in a statement. Billionaire Nelson Peltz's Trian Fund Management LP is the largest shareholder of Wendy's/Arby's.

Increasing leverage to buy back stock does not create long-term shareholder value.