Originally Posted by
PK387
They’re only paying 5.8% on these notes? That’s actually an amazing deal for the company, especially in a world where you can get Treasuries that pay almost 5.6%. Personally I’d want a hell of a lot more yield than that to be buying airline debt over US government debt given the history of each…
At the time the 10yr US Treasury was 3.7ish% for reference, but yeah not half bad considering the risks associated with such debt! The airline industry doesn’t exactly have a great track record for investors…