Investment grade consumer staples bonds are issued by companies that sell everyday necessities: groceries, household and personal care products, food and beverages, and tobacco, along with the discount and warehouse retailers that sell them. Demand for these products holds up in recessions, which keeps most issuers in the A and BBB rating categories.
For investment grade net lease investors, this is the sector with the most crossover. Walmart, Costco, Target, Kroger, Dollar General, Dollar Tree, and 7-Eleven issue bonds and also lease stores that trade as net lease investments. InvestmentGrade.com has bond-to-NNN pages for Walmart, Costco, Dollar General, Dollar Tree, and Kroger. For the broader market see the investment grade bonds hub; for the rating cutoff, see the BBB‑ / Baa3 threshold.
Consumer Staples Bond Yields Today
Most consumer staples issuers are rated in the A and BBB categories. As of October 1, 2026, the ICE BofA US Corporate index yields by rating category were AA 5.80%, A 5.84%, and BBB 6.19%, and the BB high yield index yielded 7.03%. Individual bonds trade above or below their category depending on maturity and the issuer’s credit. The table updates each business day.
| Index (rating category) | Effective yield | Option-adjusted spread | Spread range since history start |
|---|---|---|---|
| AA | 5.80% | 61 bps | 41 to 73 bps (low Aug 18, 2025; high Apr 7, 2025) |
| A | 5.84% | 73 bps | 59 to 115 bps (low Jan 22, 2026; high Oct 20, 2023) |
| BBB | 6.19% | 106 bps | 92 to 163 bps (low May 29, 2026; high Oct 20, 2023) |
| Investment grade composite | 5.99% | 86 bps | 73 to 133 bps (low Jan 22, 2026; high Oct 20, 2023) |
| BB | 7.03% | 204 bps | 150 to 311 bps (low Aug 28, 2026; high Oct 20, 2023) |
ICE BofA US Corporate (AAA to BBB) and US High Yield (BB to CCC) index effective yields and option-adjusted spreads, from the Federal Reserve Bank of St. Louis (FRED), as of October 1, 2026. The range covers the daily history FRED currently publishes for these series, which begins October 3, 2023. Updated each business day.
What Drives Consumer Staples Credit
Trade-down to value. When household budgets tighten, shoppers shift toward discount, warehouse, and private label options. That has supported mass and discount retailers while pressuring the volumes of some branded packaged food companies.
Debt-funded acquisitions. Large deals can change a staples issuer’s leverage quickly. Mars sold $26 billion of bonds in March 2025 to fund its acquisition of Kellanova. The proposed Kroger and Albertsons merger went the other way: a federal court blocked it in December 2024 and the companies terminated the agreement.
Portfolio changes. Dollar Tree completed the sale of Family Dollar on July 5, 2025, so Family Dollar leases are no longer backed by Dollar Tree’s credit unless a lease says otherwise.
Input costs and weight-loss drugs. Commodity costs and tariffs on imported ingredients pressure margins. Rating agencies are also watching whether GLP-1 weight-loss drugs reduce demand for snacks and sweets.
Lease obligors. A parent’s rating applies to a store lease only if the parent signs or guarantees it. Whole Foods is owned by Amazon, and 7-Eleven, Inc. is owned by Seven & i Holdings, but each lease must be checked for the actual tenant and any guarantor.
Consumer Staples Issuers That Are Also NNN Tenants
These grocery, discount, warehouse, and convenience retailers issue bonds or have rated parents, and they lease stores that trade as net lease investments. Ratings come from our ratings database and update automatically; n/a means no verified rating is on file. A corporate rating applies to a lease only if the rated entity signs or guarantees it.
| Issuer (rated entity) | S&P | Moody’s | Index yield for rating category | NNN median asking cap (listings) |
|---|---|---|---|---|
| Walmart | AA | Aa2 | 5.80% (AA) | 5.13% (6) |
| Sam's Club (Walmart Inc.) | AA | Aa2 | 5.80% (AA) | fewer than 5 listings |
| Costco | AA | n/a | 5.80% (AA) | fewer than 5 listings |
| Target | A | A2 | 5.84% (A) | 5.33% (6) |
| Kroger | BBB | Baa1 | 6.19% (BBB) | 5.00% (8) |
| Albertsons | BB+ | n/a | 7.03% (BB) | 5.75% (5) |
| Dollar General | BBB | Baa3 | 6.19% (BBB) | 7.00% (525) |
| Dollar Tree | BBB | n/a | 6.19% (BBB) | 7.40% (81) |
| Family Dollar | B | n/a | 8.27% (B) | 8.46% (181) |
| 7-Eleven | A- | Baa2 | 5.84% (A) | 5.00% (134) |
| Casey's General Stores | NR | n/a | not rated | fewer than 5 listings |
| BJ's Wholesale Club | n/a | n/a | 6.19% (BBB) | fewer than 5 listings |
| Whole Foods Market (Amazon.com, Inc.) | AA | A1 | 5.80% (AA) | fewer than 5 listings |
| Food Lion (Ahold Delhaize N.V.) | BBB+ | Baa1 | 6.19% (BBB) | fewer than 5 listings |
| Publix (Publix Super Markets, Inc.) | n/a | n/a | not rated | fewer than 5 listings |
| Aldi / Trader Joe's (ALDI / Trader Joe's) | n/a | n/a | not rated | 5.28% (16) |
Ratings from our ratings database (S&P Global Ratings and Moody’s rating actions and issuer filings); n/a means no verified rating is on file. Index yield is the ICE BofA effective yield for the issuer’s rating category via FRED, as of October 1, 2026, not a quote on the issuer’s own bonds. NNN median is the median asking cap rate on active listings InvestmentGrade.com tracks, as of October 9, 2026. Shaded rows are not investment grade or not rated.
Bond Index Yield vs. NNN Cap Rate
For tenants with enough active listings, the table compares the bond index yield for the tenant’s rating category with the median asking cap rate on its listings.
| Tenant | S&P / Moody’s | Index yield (category) | Median asking cap rate (listings with a cap rate) | Spread |
|---|---|---|---|---|
| Walmart Bonds vs. NNN analysis | AA / Aa2 | 5.80% (AA) | 5.13% (6) | −68 bps |
| Target | A / A2 | 5.84% (A) | 5.33% (6) | −52 bps |
| 7-Eleven | A- / Baa2 | 5.84% (A) | 5.00% (134) | −84 bps |
| Dollar Tree Bonds vs. NNN analysis | BBB / n/a | 6.19% (BBB) | 7.40% (81) | +121 bps |
| Dollar General Bonds vs. NNN analysis | BBB / Baa3 | 6.19% (BBB) | 7.00% (525) | +81 bps |
| Kroger Bonds vs. NNN analysis | BBB / Baa1 | 6.19% (BBB) | 5.00% (8) | −119 bps |
| Albertsons | BB+ / n/a | 7.03% (BB) | 5.75% (5) | −128 bps |
Showing 7 tenants. Index yield is the ICE BofA effective yield index for the tenant’s rating category (US Corporate AAA, AA, A or BBB index; US High Yield BB, single-B or CCC and lower index), using the S&P rating, or the Moody’s equivalent where S&P does not rate, from the Federal Reserve Bank of St. Louis (FRED), as of October 1, 2026. It is an index average, not a quote on the company’s own bonds. Median asking cap rate is the median of asking cap rates (stated, or computed from stated income and price when no rate is stated) on active listings InvestmentGrade.com tracks, listings last observed October 5, 2026; asking cap rates are not closed-sale cap rates. Spread is the median asking cap rate minus the index yield. Ratings are the agency ratings in our ratings database for the entity shown; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company. The entity that signs or guarantees a given lease can differ, so confirm the lease obligor. Shaded rows are below investment grade. NR means the agency does not rate the entity; n/a means no verified rating is on file. Not shown because fewer than 5 active listings with a published cap rate were observed: Costco.
The full tenant-by-tenant comparison is in the bond-to-NNN spread table.
Other Major Consumer Staples Bond Issuers
Large consumer staples bond issuers that rarely appear as net lease tenants. This roster does not show ratings, which change; confirm the current rating with S&P, Moody’s, or Fitch or the issuer’s investor relations site.
| Subsector | Issuers (ticker) |
|---|---|
| Food and beverage | Coca-Cola (KO); PepsiCo (PEP); Hershey (HSY); Hormel Foods (HRL); Mondelez International (MDLZ); General Mills (GIS); Kraft Heinz (KHC); Tyson Foods (TSN); Conagra Brands (CAG); J.M. Smucker (SJM); McCormick (MKC); Keurig Dr Pepper (KDP); Constellation Brands (STZ) |
| Household and personal care | Procter & Gamble (PG); Colgate-Palmolive (CL); Kimberly-Clark (KMB); Clorox (CLX); Church & Dwight (CHD); Estee Lauder (EL) |
| Tobacco | Philip Morris International (PM); Altria Group (MO); British American Tobacco (BTI) |
| Food distribution | Sysco (SYY) |
Consumer Staples Bond Risks
- Volume pressure at branded food companies. Private label competition and changing diets can weigh on volumes that price increases no longer offset.
- Leverage from acquisitions. Large debt-funded deals can lead to downgrades or negative outlooks.
- Refinancing at higher rates. Bonds issued at low coupons in 2020 and 2021 are maturing into higher yields, raising interest costs.
- Tariffs and input costs. Imported ingredients and packaging costs can squeeze margins when they cannot be passed through.
- Tobacco volume decline. Cigarette volumes keep falling; reduced-risk products and pricing offset part of the decline.
Frequently Asked Questions
What are investment grade consumer staples bonds?
Bonds rated BBB‑/Baa3 or higher issued by companies that sell everyday necessities, including food and beverage, household and personal care products, tobacco, and the discount, warehouse, and grocery retailers that sell them.
How do consumer staples bond yields compare with the broader market?
Staples issuers trade close to the yields of their rating categories. As of October 1, 2026, the ICE BofA A-rated US corporate index yielded 5.84% and the BBB-rated index 6.19%; individual bonds vary by maturity and issuer.
What is the bond-to-NNN spread for consumer staples tenants?
It varies widely by tenant. Today the median asking cap rate on Dollar General listings is 7.00% against a BBB index yield of 6.19% (spread +81 bps), while Walmart listings have a median of 5.13% against an AA index yield of 5.80% (spread −68 bps). Ground leases usually ask lower cap rates than fee simple properties, and land under a ground lease is not depreciable, so any after-tax advantage depends on the improvements the investor owns.
Does Amazon’s rating back Whole Foods leases?
Not automatically. Whole Foods is owned by Amazon, but the rating applies to a lease only if Amazon or another rated entity signs or guarantees it. Check the tenant and guarantor named in each lease.
What happened to Family Dollar?
Dollar Tree completed the sale of Family Dollar on July 5, 2025. Family Dollar is now privately owned and not rated in our database, so Family Dollar leases should be underwritten on their own terms.
Own or Buying Consumer Staples Net Lease Property?
If you own net lease property leased to a grocery, discount, or warehouse retailer and have maturing debt or are weighing a sale, we can review refinance and sale options and find buyers among private investors, family offices, and 1031 exchange buyers.
On the majority of NNN transactions, the listing broker pays a cooperating commission, so there is typically no separate fee to you as the buyer for professional representation.
Find it: on market and off market net lease properties, sourced and underwritten for your criteria.
Fund it: acquisition, refinance, and recapitalization financing through our lender relationships.
Exit it: a buyer pool that includes institutions, family offices, and 1031 exchange buyers.
Exchange it: 1031 exchanges into or out of net lease property, run against the deadlines.
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Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
