The bond has shed more than 10% of face value since issuance, highlighting how long-dated debt can be hit hard as interest-rate math turns against fixed-income prices.
Alphabet’s 100-year sterling bond has fallen below 90 pence on the pound, leaving it down more than 10% of face value since issuance. The move underscores the vulnerability of ultra-long-dated bonds to shifts in rates, because fixed coupons become less attractive when market conditions change and price sensitivity rises with longer maturities.