Category: Insight

19 Jun 2020

CAM High Yield Weekly Insights

Fund Flows & Issuance:  According to a Wells Fargo report, flows week to date were +$1.3 billion and year to date flows stand at $35.2 billion.  New issuance for the week was $15.3 billion and year to date issuance is at $184.8 billion.

 

(Bloomberg)  High Yield Market Highlights

  • S. junk bond sales for June may top $45 billion by the end of Friday, making this one of the busiest months on record for issuance. Eldorado Resorts Inc. is expected to round out a busy week with billions of dollars of debt for its acquisition of Caesars Entertainment Corp.
  • The issuance surge comes even as junk bond spreads and yields have come under pressure amid stock volatility and fears of a fresh outbreak of the coronavirus
  • Spreads widened 16bps to 577bps more than Treasuries Thursday, yields rose 15bps to 6.42% and the index posted a loss of 0.33%
  • But Barclays Plc strategists led by Brad Rogoff see spreads grinding tighter with the economic recovery expected to be faster than in previous contractions and the bar for a new round of widespread lockdowns high
  • Stock futures are higher on a breakthrough in trade negotiations between America and China
  • Investors are still putting cash into high-yield funds, albeit at a slower rate, with an inflow of $1.3b for the week. This was the 12th consecutive week of inflows
  • The new issue market is still cranking out deals.

 

(Bloomberg)  Fed Will Begin Buying Broad Portfolio Of U.S. Corporate Bonds 

  • The Federal Reserve said Monday that it will begin buying individual corporate bonds under its Secondary Market Corporate Credit Facility, an emergency lending program that to date has purchased only exchange-traded funds.
  • The central bank also added a twist to its buying strategy, saying it would follow a diversified market index of U.S. corporate bonds created expressly for the facility.
  • “This index is made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility’s minimum rating, maximum maturity and other criteria,” the Fed said in a statement. “This indexing approach will complement the facility’s current purchases of exchange-traded funds.”
  • The SMCCF is one of nine emergency lending programs announced by the Fed since mid-March aimed at limiting the damage to the U.S. economy by the coronavirus pandemic. With a capacity of $250 billion it has so far invested about $5.5 billion in ETFs that purchase corporate bonds.

 

(Bloomberg)  Delta Air CEO Sees Hitting Break-Even Around Spring of Next Year

  • Delta Air Lines Inc. hopes to reach its break-even point by next spring as rising demand prompts the carrier to continue increasing flying capacity, Chief Executive Officer Ed Bastian said.
  • “We are in the process of recovery, there’s no doubt about it,” Bastian said Thursday on Bloomberg Television. “There are clear signs the momentum we have is meaningful and continuing to build.”
  • The Atlanta-based airline plans to add around 1,000 flights a day to its schedule in July and again in August, he said. U.S. airlines that had slashed flying have begun to put more planes in the sky as states lift stay-at- home orders and other limits on activity. Delta expects to operate about 30% of its year-earlier flying schedule by the end of September.
  • “We’re at 15% of revenues today and we hope to get to 30% over the next two or three months, keeping costs at that 50% level,” Bastian said in the interview, with David Westin. “I would imagine by the spring next year, we’d be at a point where we’re break-even.”
  • The U.S. Labor Day holiday in early September will be “an important milestone and pivot point” because it’s typically when business travel starts to build after summer, Bastian said.
  • Delta is on track to burn about $30 million in cash this month, better than its target of reducing the figure to $40 million from $100 million earlier in the pandemic, Bastian said.
  • He expects to reach zero by year-end. The airline has cut operating expenses by 55% since the coronavirus outbreak began to affect travel in March.
  • Bastian said he doesn’t expect widespreadlayoffs at Delta after Sept. 30, when prohibitions against job cuts that are part of federal financial aid expire. About 40,000 employees have taken voluntary leaves, the company said at its annual meeting later Thursday.
12 Jun 2020

CAM Investment Grade Weekly Insights

Spreads are set to finish the week wider, giving back some of the big move tighter from last week.  The Bloomberg Barclays US Corporate Index closed on Thursday June 11 at 161 after closing the week of June 5 at 146.  The corporate index was a beneficiary of lower Treasuries and the total return for the year through Thursday inched higher to +4.10%.  This week saw spreads move modestly tighter on Monday followed by moves wider on Tuesday and Wednesday followed by a violent move wider on Thursday.  The tone was more positive on Friday with spreads moving tighter, recouping some of the move wider from the prior three days.  Rates moved lower throughout the week to the tune of about 10 basis points versus the week prior which saw a close on the 10yr Treasury of 0.895% vs sub-0.70% as we go to print.

The primary market saw its slowest week since early March with just over $25bln in new corporate bond issuance.  The Fed meeting on Wednesday and market rout on Thursday were the one-two punch that kept issuers at bay.  Supply is expected to pick-up again next week with preliminary expectations calling for $40-$50 billion of supply according to data compiled by Bloomberg.

According to data compiled by Wells Fargo, inflows for the week of June 4-10 were +$13.6bln which brings the year-to-date total to -$-12.7bln.  This extends the 10-week streak of inflows to $89bln+ for investment grade funds.

 

 

 

12 Jun 2020

CAM High Yield Weekly Insights

Fund Flows & Issuance:  According to a Wells Fargo report, flows week to date were +$4.4 billion and year to date flows stand at $29.5 billion.  New issuance for the week was $13.1 billion and year to date issuance is at $169.5 billion.

 

(Bloomberg)  High Yield Market Highlights

  • S. junk bonds may steady on Friday after spreads widened the most in seven weeks. But after a volatile few days, would-be borrowers may stay on the sidelines for now.
  • Spreads widened 46bps to 620bps over Treasuries on Thursday. They’ve widened almost 100bps since last Friday
  • Yields jumped 44bps to 6.84%, the biggest increase in almost 12 weeks, according to data compiled by Bloomberg
  • The pressure may ease with stock futures bouncing back after a dramatic sell-off spurred by concerns over a second wave of coronavirus infections and a slower-than-expected economic recovery
  • The primary market has remained open amid the turbulence, but the pace has slowed with just two deals sold Thursday.
  • Junk bond retail funds continued to see more inflows
  • Junk bonds posted a loss of 1.35% on Thursday, the biggest one-day loss in more than seven weeks. They’ve posted losses for three straight days, the first time that’s happened since the week of May 11

 

(Bloomberg)  Wall Street’s New Bond-Ordering System to Launch by End of Year

  • The joint venture between Wall Street’s biggest banks that’s looking to revolutionize the way new corporate bonds are marketed and sold plans to launch in the fourth quarter of 2020.
  • DirectBooks LLC — backed by Bank of America Corp., Barclays Plc, BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. — will start by announcing new credit offerings on its platform, before enabling orders and allocations, according to Richard Kerschner, the company’s chief executive officer.
  • The platform is preparing to go live at a time when demand for the new service has arguably never been greater. U.S. and European investment-grade corporate bond sales each smashed through the trillion-dollar and euro marks at the fastest pace ever this year, highlighting the need for a digitized process to buy and sell new deals, Kerschner said.
  • Wall Street is looking to modernize the process of buying new corporate bonds that still relies on phone calls, instant messaging and emails to handle billions of dollars in orders.

 

(Bloomberg)  Fed Sees Zero Rates Through 2022, Commits to Keep Buying Bonds

  • The Federal Reserve pledged to maintain at least the current pace of asset purchases and projected interest rates will remain near zero through 2022, as Chairman Jerome Powell committed the central bank to using all its tools to help the economy recover from the coronavirus.
  • “We’re not even thinking about thinking about raising rates,” he told a video press conference Wednesday. “We are strongly committed to using our tools to do whatever we can for as long as it takes.”
  • The Federal Open Market Committee earlier said it would increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities “at least at the current pace” to sustain smooth market functioning.
  • A related statement from the New York Fed specified that the pace of the increase would be about $80 billion a month for purchases of Treasuries and about $40 billion of mortgage-backed securities.
  • “Acting on mortgage-backed securities and Treasuries underscores their belief that more support is needed,” said Diane Swonk, chief economist with Grant Thornton in Chicago. “The Fed does not see a victory in the employment bounce-back. The risk of deflation is still high and the economy needs more support to heal more fully.”
  • The Fed’s quarterly projections — updated for the first time since December, after officials skipped their March release amid the burgeoning pandemic — showed all policy makers expect the funds rate to remain near zero through the end of 2021. All but two officials saw rates staying there through 2022.
  • The economy faces “considerable risks” over the medium term, the Fed said in its statement, reiterating language from the last FOMC meeting in late April.
29 May 2020

CAM Investment Grade Weekly Insights

Spreads moved significantly tighter throughout the week.  The Bloomberg Barclays US Corporate Index closed on Thursday May 28 at 175 after closing the week of May 22 at 185.  The corporate index total return for the year through Thursday was +2.54%.

The primary market was busy again but volume was lower for the second consecutive week.  This week saw over $38bln price in the primary market.    Corporate issuance has now passed the $1 trillion mark for 2020 and it has done so at its fastest pace ever.  New issue concessions have steadily declined in recent weeks and even turned negative for some deals in the latter half of this week.  Strong inflows into the IG markets are the driving factor behind narrowing (and negative) concessions.

According to data compiled by Wells Fargo, inflows for the week of May 21-27 were +$11.5bln which brings the year-to-date total to -$43.7bln.  This extends the 8-week steak of inflows to $55bln for investment grade funds.

 

 

 

29 May 2020

CAM High Yield Weekly Insights

Fund Flows & Issuance:  According to a Wells Fargo report, flows week to date were +$5.3 billion and year to date flows stand at $16.6 billion.  New issuance for the week was $8.9 billion and year to date issuance is at $142.9 billion.

 

(Bloomberg)  High Yield Market Highlights

  • Wesco International Inc. is poised to round out a busy month for the high-yield market. Its $2.825b deal is slated to price Friday, which could make May the third busiest month on record, according to data compiled by Bloomberg.
  • Issuance month-to-date stands at $41b. Wesco’s issue would boost that to almost $44b
  • Junk bonds have had a strong month with spreads tightening amid billions of cash inflows. S. high yield funds reported an inflow of $5.3b for the week
  • High-yield spreads tightened 12bps to +631bps, the lowest since March 10. Yields fell below 7% for the first time since March to 6.97%
  • “Spreads have rallied meaningfully over the past two weeks in response to reopening optimism, supportive market technicals, and macro data that have been better than feared,” Barclays Plc credit strategist Brad Rogoff wrote in a note on Friday
  • While spreads may tighten more in the near term, longer-term risks remain, he said
  • Other would- be borrowers may stay on the sidelines Friday with stock futures slipping amid tensions between the US and China.
  • The junk bond rally continued with the index now gaining for eight straight sessions, the longest winning streak since January. It posted returns of 0.46% on Thursday
  • CCCs were the best performers with returns of 0.84%. Spreads declined the most in six weeks to close at +1,198, while yields closed at 12.87%
  • “Spreads for the lowest rated portion of the market have seemingly compressed toward the rest of high yield,” Barclays’ Rogoff wrote
  • The rally was partly driven by constituent changes such as defaults, rating actions, and new issue
  • “They do not look nearly as rich when accounting for these changes,” Rogoff wrote

 

(Bloomberg)  Williams Says Fed Thinking ‘Hard’ About Yield-Curve Control

  • Federal Reserve Bank of New York President John Williams said policy makers are “thinking very hard” about targeting specific yields on Treasury securities as a way of ensuring borrowing costs stay at rock-bottom levels beyond keeping the benchmark interest rate near zero.
  • “Yield-curve control, which has now been used in a few other countries, is I think a tool that can complement -– potentially complement –- forward guidance and our other policy actions,” he said in an interview Wednesday on Bloomberg Television with Michael McKee and Jonathan Ferro. “So this is something that obviously we’re thinking very hard about. We’re analyzing not only what’s happened in other countries but also how that may work in the United States.”
  • Federal Reserve Bank of New York President John Williams says the Fed will use all of its available tools to best achieve its maximum employment and price stability goals.
  • Yield-curve control — where the central bank caps yields on government bonds of a chosen maturity through potentially unlimited purchases — has been used by Japan for years to stimulate economic activity and was recently adopted in Australia. Investors see the Fed embracing the tool in coming months as policy makers turn their attention toward fostering a strong rebound from the severe downturn caused by the coronavirus pandemic.
  • While May or June might mark the low point, “even if we are starting to see perhaps a stabilization there in terms of the economy and maybe a little bit of a pickup, we’re still in a very difficult situation,” Williams said.

 

(Wall Street Journal)  U.S. Rebukes Beijing On Hong Kong — Pompeo says state isn’t autonomous, in move imperiling its special trade status

  • The U.S. no longer believes Hong Kong has a high degree of autonomy from China, Secretary of State Mike Pompeo said in a statement likely to unsettle the global financial center and certain to aggravate Beijing.
  • The determination, announced Wednesday and required under federal law, amounted to a U.S. condemnation of China’s announcement of plans to impose greater control over Hong Kong, a move that triggered renewed protests against Beijing.
  • The State Department under a 1992 law must assess the extent of the former British territory’s autonomy from China. It certified to Congress on Wednesday that the city is no longer autonomous.
  • The decision opens the way for President Trump to take a range of possible measures, from revoking special arrangements on trade to imposing sanctions on people involved in suppressing civil liberties in the city.
  • A Chinese spokeswoman in Washington accused the U.S. of meddling in its internal affairs and said pending national-security legislation that triggered the protests had no effect on Hong Kong’s autonomy or the rights of residents and foreign investors. “We will take necessary countermeasures in response,” she said.
22 May 2020

CAM Investment Grade Weekly Insights

Spreads moved significantly tighter throughout the week.  The Bloomberg Barclays US Corporate Index closed on Thursday May 21 at 187 after closing the week of May 15 at 208.  The corporate index total return for the year through Thursday was +2.15%.  The fixed income markets will close early on Friday ahead of the Memorial Day weekend and spreads are modestly wider as we go to print as it looks like the extended rally in credit might finally have an off day.

The primary market was busy again but volume was lower than the week prior.  It could well be that the early market close on Friday was the only thing that kept volumes lower on the week as we saw over $47bln of new debt price through Thursday with no issuers on the calendar for Friday morning.    Corporate issuance is closing in on the $1 trillion mark as nearly $970bln of corporate debt has been priced so far this year which is 90% ahead of 2019’s pace.  We are still finding attractive opportunities in the primary market but certainly fewer today than in the recent past.  According to data compiled by Bloomberg, concessions have trended downward over the last month with issuers averaging just over 5bps this week vs 11bps last week and 22bps the week prior.

According to data compiled by Wells Fargo, inflows for the week of May 14-20 were +$8.5bln which brings the year-to-date total to -$55.2bln.  This extends the 7-week steak of inflows to $43.5bln for investment grade funds.

 

 

22 May 2020

CAM High Yield Weekly Insights

Fund Flows & Issuance:  According to a Wells Fargo report, flows week to date were +$5.2 billion and year to date flows stand at $11.3 billion.  New issuance for the week was $8.3 billion and year to date issuance is at $134.0 billion.

 

(Bloomberg)  High Yield Market Highlights

  • S. junk bond issuance will likely slow ahead of the long weekend. More than $8 billion sold this week amid a rally that has seen spreads retreat to below 700 basis points for the first time since March.
  • Average high-yield spreads have rallied 76bps since last Friday to 681bps over Treasuries, the lowest level since March 11, according to Bloomberg Barclays index data
  • Investors are looking to past points of weakness as a possible guide to performance in coming months, according to Barclays Plc credit analysts led by Brad Rogoff
  • “With corporate fundamentals likely to remain under meaningful pressure, we have an up-in-quality bias in the high yield market and prefer BBs,” they wrote in a note Friday
  • Junk bond funds reported an inflow of $5.2 billion for week, the eighth straight week of inflows
  • High-yield issuance is nearing $32b this month, making it the busiest May in five years. Seven deals for over $3 billion sold Thursday as borrowers rushed to clear the market before the Memorial Day holiday
  • Junk bonds gained for the fourth consecutive session with returns of 0.4% on Thursday. Spreads fell 10bps to close at +681, still the lowest in 10 weeks. Yields dropped 14bps to 7.45%
  • CCCs were the best performers on Thursday with returns of 0.69%. Spreads dropped 16bps to +1,309bps, a new 10-week low. Yields fell 15bps to 13.80%

 

(CNBC)  Powell says GDP could shrink more than 30%

  • The U.S. economy could shrink by upwards of 30% in the second quarter but will avoid a Depression-like economic plunge over the longer term, Federal Reserve Chairman Jerome Powell told “60 Minutes” in an interview aired Sunday.
  • The central bank chief also conceded that jobless numbers will look a lot like they did during the 1930s, when the rate peaked out at close to 25%,
  • However, he said the nature of the current distress coupled with the dynamism of the U.S. and the strength of its financial system should pave the way for a significant rebound.
  • Asked by host Scott Pelley whether unemployment would be 20% or 25%, Powell said, “I think there’re a range of perspectives. But those numbers sound about right for what the peak may be.”  Pressed on whether the U.S. is headed for a “second depression,” he replied, “I don’t think that’s a likely outcome at all. There’re some very fundamental differences.”
  • In a part of the interview that did not air, Powell said shrinkage of U.S. economic growth “could easily be in the 20s or 30s,” according to a CBS transcript.
  • “I think there’s a good chance that there’ll be positive growth in the third quarter. And I think it’s a reasonable expectation that there’ll be growth in the second half of the year,” Powell said. “I would say though we’re not going to get back to where we were quickly. We won’t get back to where we were by the end of the year. That’s unlikely to happen.”

 

(Bloomberg)  Yields Over 10% Keep on Coming in Deeply Split Junk Bond Market

  • The junk bond market has become no stranger to double-digit yields.
  • S. Steel Corp. is the latest to join the crowd, marketing a $1 billion secured offering at 12% that may also be discounted to entice investors. Northwest Fiber is sounding out interest for $250 million of unsecured bonds at 10.75%, also with a discount, to help finance an acquisition. Cooper-Standard’s secured deal of the same size sold at a 13.664% yield.
  • The junk bond market has rallied to an average yield of 7.6% from a peak 11.7% in March. But that number can be misleading. It’s so bifurcated that many companies actually borrow either substantially below that rate, or in these cases Thursday, much higher. On top of the big interest expense, several of the riskier companies, like U.S. Steel and Cooper-Standard, are also pledging valuable assets to turn over to creditors should they not be able to pay in cash.
  • The quality of that collateral has become increasingly important since creditors balked at the aging fleet put up by United Airlines Holdings Inc. in its recent attempt to borrow. United ended up pulling the deal, unwilling to borrow at the higher 11% yield investors demanded than what was initially offered.

 

(Reuters)  China move to impose security laws on Hong Kong

  • Beijing is moving to impose new national security legislation on Hong Kong following last year’s often violent anti-China unrest that plunged the city into its deepest turmoil since it returned to Beijing rule in 1997.
  • The introduction of Hong Kong security laws are on the agenda of the Chinese parliament which begins its annual session on Friday.
  • The proposed legislation, which prompted concerns over freedoms in the semi-autonomous city, comes after large-scale and often violent pro-democracy demonstrations last year, which had already pushed some wealthy individuals to scout for investment options elsewhere.
  • “In some cases where clients had a bit of inertia and hoped things that happened last year will just go away, they will now step on the gas to reduce their wealth concentration risk here,” said a senior banker at a European private bank.
  • “In many cases last year, we saw our clients putting in place plan B and didn’t quite move the assets out of Hong Kong. I have already received some enquiries to activate that plan now,” said the banker, whose firm manages more than $200 billion in assets.
15 May 2020

CAM Investment Grade Weekly Insights

Spreads moved tighter throughout the week.  The Bloomberg Barclays US Corporate Index closed the week of May 15 at an OAS of 208 after closing the prior week at 212.  Through Friday, the index total return for the year was +0.72%.

The primary market again remained en fuego as borrowers rushed to stock their coffers with liquidity.  Over $60 billion in new debt was priced this past week according to data compiled by Bloomberg.  So far more than $156 billion has priced during the month of May.  It seems that the Memorial Day Holiday is the only thing that can slow the pace of issuance at this point.

According to data compiled by Wells Fargo, inflows for the week of May 7-13 were +$6.2bln which brings the year-to-date total to -$74.6bln.  This extends the 6-week steak of inflows to $35bln for investment grade funds.

08 May 2020

CAM Investment Grade Weekly Insights

Spreads drifted modestly wider throughout the week.  The Bloomberg Barclays US Corporate Index closed the week of May 8 at an OAS of 212 after closing the prior week at 206. Still, we have come a long way from the market wide on the index, which was an OAS of 373 on March 23.  Through Friday, the index total return for the year was nearly unchanged at +0.03%.

The primary market continues to be at the forefront as the historic deluge of issuance continues to break records on what seems like a daily basis.   $93.2 billion in new debt was priced this week according to data compiled by Bloomberg.  This vaulted the week into one of the top-5 busiest ever for volume.  There is no end in sight to issuance as borrowing costs remain low, investor demand is robust and companies are eager to amend, extend, refinance and bolster liquidity amid economic uncertainty.

According to data compiled by Wells Fargo, inflows for the week of April 30-May 6 were +$6bln which brings the year-to-date total to -$80.8bln.

 

08 May 2020

CAM High Yield Weekly Insights

 Fund Flows & Issuance:  According to a Wells Fargo report, flows week to date were +$2.9 billion and year to date flows stand at $2.8 billion.  New issuance for the week was $8.1 billion and year to date issuance is at $113.8 billion.

 

(Bloomberg)  High Yield Market Highlights

  • Barclays credit strategists led by Brad Rogoff have increased their forecast for full-year supply to $290b to $310b, driven by an increase in refinancings and general corporate purpose funding. The previous estimate was $240b to $260b
  • “The midpoint of this estimate would represent the largest supply year since 2014. Several tailwinds should result in additional supply, including the need to fund negative free cash flow, as well as loan issuers’ turning to the bond market given a more supportive demand technical,” they wrote in a note Friday
  • Investors continue to pour cash into the asset class with an inflow of $2.9b into U.S. high yield funds for the week
  • This is the sixth straight week of inflows
  • Junk bonds returned 0.22% yesterday, the third straight session of gains
  • Heavy issuance hasn’t weighed on spreads which edged tighter again to +735bps, and are 10bp lower since last Friday. Yields fell 6bps to 7.93%

 

(Bloomberg)  New York Fed Says It Will Begin Buying ETFs in ‘Early May’

  • The Federal Reserve is close to starting up two corporate lending programs that could buy up to $750 billion in debt and exchange-traded funds under its emergency coronavirus actions.
  • The New York Fed announced on its website Monday that it expects to begin purchasing shares of eligible ETFs in early May through its Secondary Market Corporate Credit Facility. Lending through the Fed’s Primary- and secondary-market corporate credit facilities via purchases of corporate bonds will begin soon thereafter, it said. ETFs are included in the secondary facility and the program’s announcement in March had a major impact on that market.
  • “Additional details on timing will be made available as those dates approach,” the New York Fed said.
  • The corporate facilities are among nine emergency lending programs announced by the Fed to help shelter the U.S. economy from the pandemic and keep credit flowing. The move was a dramatic escalation of the central bank’s intervention, stepping into the corporate debt markets for the first time since the 1950s and including some sub-investment grade debt in the ETF purchases.
  • The corporate programs are backed by the more than $2 trillion economic relief package passed by Congress. Businesses across the nation have shuttered to limit contagion and more than 30 million people have claimed unemployment benefits in the last six weeks. So far, only four programs are up and running.
  • “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chair Jerome Powell said during an April 29 press conference. “The ultimate demand for the facilities is quite difficult to predict because there is this ‘announcement effect’ that really gets the market functioning again. Of course, we have to follow through, though. And we will follow through to validate that announcement effect.”

 

(Reuters) U.S. airlines burn through $10 billion a month as traffic plummets

  • S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight because of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday.
  • Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, were averaging just 17 passengers per domestic flight and 29 passengers per international flight.
  • “The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago,” the group’s chief executive, Nicholas Calio, will say, according to his prepared testimony.
  • Net booked passengers have fallen by nearly 100% year-on-year, according to the testimony before the Senate Commerce Committee. The group warned that if air carriers were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, “this will result in negative cash balances that will lead to bankruptcy.”

 

(Bloomberg)  Junkiest Junk Decays in Basement of Credit Rally 

  • Investment-grade credit has recouped March losses and junk bonds are halfway back despite foul fundamentals and a deluge of new issuance. CCC debt didn’t rise with the tide and looks set to plumb new depths as the distressed cycle grips.