View Poll Results: Will AA declare bankruptcy?
Yes
219
70.65%
No
91
29.35%
Voters: 310. You may not vote on this poll
Bankruptcy
09-22-2022, 09:11 AM
#1231
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,878
Originally Posted by Excargodog
Why don’t you just block me if you don’t like reading my posts? I’ve blocked a few people whose comments I didn’t care to read. It’s a fairly easy process. I certainly won’t take it personally. h€||, it’s doubtful I’ll even know.
09-22-2022, 09:19 AM
#1232
Gets Everyday Off
Joined APC: Aug 2016
Position: Fully Retired
Posts: 7,000
Originally Posted by Excargodog
Why don’t you just block me if you don’t like reading my posts? I’ve blocked a few people whose comments I didn’t care to read. It’s a fairly easy process. I certainly won’t take it personally. h€||, it’s doubtful I’ll even know.
09-22-2022, 09:32 AM
#1233
Banned
Joined APC: Jan 2008
Position: Pilot
Posts: 2,625
Originally Posted by TransWorld
I have not blocked anyone, even those that annoy me or I disagree with. It is something I learned to be, as an adult.
09-22-2022, 09:59 AM
#1234
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,607
https://ibb.co/yp1hM5Z]
[/url]
https://www.reuters.com/markets/us/o...ts-2022-09-20/
An excerpt:
[/url]https://www.reuters.com/markets/us/o...ts-2022-09-20/
An excerpt:
Sept 20 (Reuters) - When U.S. consumer products company Newell Brands Inc (NWL.O) refinanced $1.1 billion worth of bonds earlier this month, it saw its borrowing costs jump by more than half.
The maker of Sharpie pens and Rubbermaid storage containers agreed to pay annual interest of between 6.4% and 6.6%, up from the 3.9% annual coupon it was paying, in exchange for pushing back the bonds' maturity by four and six years.
Newell Brands had seven months left until it had to pay back the principal on these bonds and could have held out in the hopes of a cheaper debt deal. But with the Federal Reserve rushing to raise interest rates to combat rampant inflation, it made sense for the Atlanta, Georgia-based company to refinance now, credit ratings agency Moody's Investors Service Inc said in a note. Newell Brands is rated Ba1 by Moody's
The maker of Sharpie pens and Rubbermaid storage containers agreed to pay annual interest of between 6.4% and 6.6%, up from the 3.9% annual coupon it was paying, in exchange for pushing back the bonds' maturity by four and six years.
Newell Brands had seven months left until it had to pay back the principal on these bonds and could have held out in the hopes of a cheaper debt deal. But with the Federal Reserve rushing to raise interest rates to combat rampant inflation, it made sense for the Atlanta, Georgia-based company to refinance now, credit ratings agency Moody's Investors Service Inc said in a note. Newell Brands is rated Ba1 by Moody's
09-22-2022, 11:08 AM
#1235
Gets Weekends Off
Joined APC: Mar 2021
Posts: 1,495
Originally Posted by Excargodog
09-22-2022, 11:11 AM
#1236
That/It/Thang
Joined APC: Aug 2020
Posts: 2,848
Originally Posted by Excargodog
Why don’t you just block me if you don’t like reading my posts? I’ve blocked a few people whose comments I didn’t care to read. It’s a fairly easy process. I certainly won’t take it personally. h€||, it’s doubtful I’ll even know.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
09-22-2022, 12:36 PM
#1237
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,878
Originally Posted by CincoDeMayo
Come on boy, back in the car.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
The AA pilot group is appreciative!
09-22-2022, 07:34 PM
#1238
Gets Weekends Off
Joined APC: Oct 2017
Posts: 428
Originally Posted by CincoDeMayo
Come on boy, back in the car.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
Please and Thank You
09-22-2022, 07:53 PM
#1239
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,607
Originally Posted by ImSoSuss
ohhh nooo, not sharpie pens????
Since you didn’t understand that you might not understand ‘junk’ bonds either (yeah, it’s a pejorative term - sort of judgmental at that - but I didn’t make it up. A ‘junk’ bond is a bond rated at a non-investment grade. But if the sharpie thing confused you, that probably does too, so I’ll try to give you a little more background.
There are three major credit rating agencies that unfortunately use a slightly different scale in rating the creditworthiness of companies selling bonds or getting lines of credit.
Unfortunately, COVID has not treated airline finances kindly and most airlines credit rating is speculative, that is, ‘junk’. For AA there current rates is a B-.
Now most existing debt was taken on back when the fed was holding interest rates real low, at or near zero, which allowed even junk rated companies to sell bonds at a coupon rate of only 3 or 4% and get loans (generally lines of credit that charged only on the money drawn from them) for only a little more. But that was then and this is now. Now the Fed is jacking up the rate they control which jacks up all the new loan and bond rates - junk rates especially. Let me show you a non sharpie example:
Now in this case a consortium of 30 banks and financiers including some big hitters like Credit Suisse and Goldman Sachs were trying to sell bonds and leveraged loans for a ‘B’ rated company. But the auction couldn’t actually sell the debt at the offered prices so they wound up having to sell at a discount which effectively made the coupon - that is, the amount the company had to pay to service the debt - nearly 10%. Even at that the banks in the consortium were forced to buy much of the debt themselves to complete the transaction and wound up losing money on the deal themselves:
So you see, it isn’t about sharpies at all. It’s about debt that was incurred with a coupon of three or four percent that will ultimately need to be refinanced at a considerably higher rate - especially if the Fed keeps raising interest rates like they just did and have said they are going to keep on doing.
You can underline that last paragraph with a sharpie if you have one.
09-22-2022, 08:13 PM
#1240
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,607
Originally Posted by CincoDeMayo
Come on boy, back in the car.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
Im sorry to the AA pilots. Sometimes Excargo gets out of his Spirit cage and runs wild and dumps in the neighbors yards.
Excargo, bad bad boy, bothering these nice people. Maybe you should look at your own messy house before talking crap about others.
Again, im so sorry. Ill whack him with the newspaper when we get home, like I do when he drags his butt across the carpet.
Not talking cr@p about anyone just stating facts or at least reasonable opinions like this one:
Fed tightening: debt investors bet on high yields and a soft landing
Madeleine Bruder1 hour ago2 minutes read
To understand the significance of the US central bank’s latest message, do not focus on Fed chair Jay Powell, but Charif Souki. Souki is a former restaurateur turned energy pioneer. His latest venture, Tellurian, is attempting to build a liquefied natural gas terminal in Louisiana. It is a seemingly timely venture given global demand.
Tellurian had been seeking to raise $1bn through a junk bond offering. This week, Souki pulled the deal as a result of weak demand. This despite Tellurian offering a coupon of more than 11 per cent plus stock warrants.
Last year, junk bond yields fell below 4 per cent. Virtually any risk seemed able to find reasonable financing. Times have changed. Attempts to fully crush persistent inflation are the central bank’s priority. While raising benchmark interest rates by 75 basis points, the Fed said this week that the Federal Funds Rate could be higher than 4 per cent by the end of 2022.
The benchmark 10-year Treasury yield now sits well above 3 per cent, a level not seen since before the global financial crisis. Still, the US economy seems resilient. Unemployment is still low. Several sharp-eyed investors have noted that seemingly safe investment grade bonds are now offering yields in the recently unheard of range of 5 to 7 per cent. They prefer that bargain to double-digit coupons on a speculative energy project.
A so-called “soft landing”, in which the Fed avoids recession and regains overall price stability, is the bet. The Fed has indicated that it is worried about a job market that is too tight that pushes up wages to levels disconnected from worker productivity gains. But tech companies such as Snap have already implemented big job cuts. Reductions are looming at larger companies such as Meta too.
The high coupons on loans and bonds that are enticing some funds to bite cannot, however, compensate for eventual defaults. According to data from S&P, the dollar value of global corporate defaults reached nearly $30bn in the second quarter. This is triple the volume in the first quarter.
It has been 15 years since a sustained volatile market and monetary tightening combination. A generation of traders and investors are experiencing an entirely new rollercoaster ride. This youthful cohort is about to grow up fast.
Like telling everyone that first year Spirit pay is shameful, and that guys like you who advocated screwing over the new hires as leverage for the senior guys is shameful. Seriously, pi$$-poor training pay, a pi$$-poor first year payscale, and no insurance for 3 months? That’s how you want to treat our junior brethren? But that ain’t talking crap either, that’s still just reality.
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