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And as of today my initial comment is out of date since DAL got downgraded.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And as of today my initial comment is out of date since DAL got downgraded.