AXL CDS USD SR 5Y D14 CORP

American Axle & Manufacturing Holdings Inc

Credit, Industrial/Transportation


Presented:07/30/2021
Price:$9.69
Cap:$1.10B
Current Price:$6.03
Cap:$0.71B

Presented

Date07/30/2021
Price$9.69
Market Cap$1.10B
Ent Value$3.96B
P/E Ratio5.5x
Book Value$3.87
Div Yield0%
Shares O/S113.99M
Ave Daily Vol1,349,836
Short Int5.89%

Current

Price$6.03
Market Cap$0.71B
American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the following segments: Driveline and Metal Forming. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994 and is headquartered in Detroit, MI.

Publicly traded companies mentioned herein: American Axle & Manufacturing Holdings Inc (AXL), General Motors Co (GM), Nidec Corp (6594 JP), NIO Inc (NIO)

Highlights

The presenter is short the senior unsecured bonds of American Axle & Manufacturing Holdings Inc (AXL) that mature in July 2028 and currently trade at 109. AXL is an automotive supplier founded in 1994 and headquartered in Detroit, MI. In addition to the fact that it operates in an industry with low margins, high capex, and significant leverage, AXL has zero exposure to electric vehicles (EV) despite the accelerating trend away from internal combustion engines (ICE). Overall, he expects AXL to have a zero terminal value and a credit problem, making this an easy way to express the negative sentiment. 

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