There's not a single high yield airliner that qualifies for this.

cinquemb · on April 10, 2020

Air Canada, ACACN 008911AZ2 US008911AZ26, rated Ba2 qualifies for this since their HY paper is held by HYG.

American Airlines Group, AAL 02376RAE2 US02376RAE27, rated B1 qualifies for this since their HY paper is held by HYG.

Probably a great time to write malware hack and steal money from these companies listed in IG and HY ETF's since they'll be made whole apparently now no matter what malfeasance they were up to before hand.

However, lets keep in mind that since the announcement on March 23, frbny via loans through blackrock has yet to buy any corporate bonds in the secondary market as of April 8th ("Loans" > "Secondary credit") : https://www.federalreserve.gov/releases/h41/current/

whatok · on April 10, 2020

Yes, HYG has some HY airliners but that doesn't make the actual issuers available for any of these facilities. That's the point that I was making.

cinquemb · on April 10, 2020

Supporting the paper in the secondary market through ETFs, will allow any new issuance to be priced more favorably than if it wasn't at all, even if frbny isn't the one doing the origination (yet, at this rate I think they will eventually along with equity etfs purchases). That's the point I'm making.

whatok · on April 10, 2020

Ok, I'm just pointing out that this does not bail out airlines at all. It helps on the margin but airlines are very idiosyncratic right now and likely are going to require much different and flexible funding needs than what these facilities are designed for. Congress will (and already is) be bailing out the airlines; not the Fed.

Several IG airlines could have issued over the past few weeks but haven't for a reason. We have had a flood of IG new issuance and not a single airline or adjacent industry. CCL which basically has the same problems as airlines right now (gov basically making business illegal) was able to raise quite a bit of money. Difference is, they know that they aren't going to get bailed out.

And as of today my initial comment is out of date since DAL got downgraded.

cinquemb · on April 11, 2020

Yeah, I guess fair enough, though it a bit hard for me to seem sympathetic to DAL senior unsecured paper (US247361ZU54) considering it was grifting along at Baa3 for quite some time before this covid-19 situation. But hey, if the US gov is willing take on more of the credit risk, oh well, cant wait untill selling US paper to be the trade of the century.