Is the Bank of Japan the latest Bubble?
An interesting development has been the surge in the share price of the Bank of Japan, the Japanese Central Bank. This move does not appear to be supported by the…
By Land or by Sea?
The direct routes, as well as being longer, are more expensive. Despite these negatives, other than bad weather, the importers and exporters seem to value the relative certainty of delivery…
Europcar – Bond Auction Flop
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…
Higher Risk = Lower Rewards!
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…
Lower for Longer?
And the V becomes L? An interesting analysis by Bloomberg who have analysed 36 recessions since 1965 across the G-7 countries and this suggests a L-shaped recovery is more likely…
Airlines – the canary sings!
IATA has once again revised down its pessimistic outlook. This new bleaker outlook is based on more recent passenger data which is even weaker than under its previous "dire" forecast.…
Airlines – a leading economic indicator?
The airline industry is one of the few global industries that have previous experience of dealing with a virus. The earliest forecasts for declines in passenger revenues were revised downwards…
Dead Companies Walking?
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…
Hertz – Bankrupt Stock Sale!
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…
A ‘U’-‘V’ Recovery?
This recession is unprecedented in terms of the speed of its onset, government-mandated shutdowns and the combination of both a supply-side and demand-side shock! The recovery is also likely to…