AAL Bonds

American Airlines Group Inc

Credit, Industrial/Transportation


Publicly traded companies mentioned herein: American Airlines Group Inc (AAL)

Highlights

The presenter thinks that the market has created an attractive opportunity to short credit. Between the interest rate environment and the debt that companies have added to their balance sheets since the beginning of the pandemic, there are multiple ways for shorts to achieve strong returns over a 1 – 2 year horizon. Even if a company outperforms a short’s expectations, rising rates could drive the price down. He considers the airline space particularly attractive, noting that it has been seen as a recovery trade but could continue to struggle generating profits post-COVID if fuel prices increase. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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