Travel Bonds Are Rewarding Investors Who Rode Out Sector’s Woes

Investors who were willing to take a chance on lending money to beleaguered travel companies at the height of the pandemic are now looking at fat profits.

Just look at the debt of Booking Holdings Inc., which turned to markets in April 2020 to help keep businesses such as its hotel website Booking.com going. That included a $862.5 million convertible bond — this hit a record high of 187 cents on the dollar on Wednesday, netting a roughly 26% return for holders in 2023 alone, according to Bloomberg data.

“For any investor that was willing to commit capital at ...