Normally when a corporate credit defaults, the purchasers of Credit Default Swap (CDS) protection receive a payout to compensate them for losses. In the case of Europcar, some holders of…

Overall it is a definite concern that the flows of cash into high-yield bonds and loans are pushing their yield to record lows at a time when defaults are actually…

Although there have been relatively few liquidations during the pandemic crisis, this can be attributed to forbearance and government supports. Given the unprecedented drop in company revenues and the high…

Interesting times when the US Securities Exchange Commission feels compelled to stop Hertz, in bankruptcy, selling new shares to the market. Given the capital structure of the company, any shares…

Lower Passenger Capacity Going Forward As widely expected there has been an increase in the number of airlines entering bankruptcy proceedings. The CDS market is indicating that Americal Airlines may…

Like most Big Trades, the fundamental rules remain the same! Liquidity, timing & luck! As John Maynard Keynes allegedly said, “Markets can stay irrational longer than you can stay solvent.”…

There have been several high profile warnings from regulators about the potential for leveraged loans to trigger the next financial crisis. In the past week leveraged loans have fallen to…