(Bloomberg) -- Bankrupt Hertz Global Holdings Inc. and its bondholders are squaring off over how to shrink its nearly half-a-million vehicle fleet. Market watchers say the outcome could upend the multi-billion dollar lease-backed ABS industry.The cars are housed in an entity linked to Hertz’s asset-backed securities and leased to the rental giant. Normally, when a company with ABS files for bankruptcy, it must choose to confirm or reject the entire master lease tied to the debt. If it keeps the lease, it has to continue making payments on the vehicles as it offloads them piecemeal. If it walks away, all of the collateral is liquidated to pay back bondholders.Hertz wants a judge to allow it to convert the master lease into 494,000 separate agreements so it can reject the terms on 144,000 vehicles. That would allow Hertz to save roughly $80 million a month while it hangs onto the remainder of...
Following an official extension of the suspension of cruise operations from U.S. ports, Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) and Royal Caribbean Cruises Ltd (NYSE: RCL) have halted nearly all cruises through September against expectations of an August resumption, according to BofA Securities.The Cruise Lines Analyst BofA's Andrew Didora updated the estimates to reflect a phased-in recovery beginning in October. The analyst also rolled forward the price targets for cruise lines to 2022 estimates. * Didora maintained a Neutral rating on Norwegian Cruise Line Holdings with a price target lifted from $12.50 to $19. * Didora reiterated an Underperform rating on Royal Caribbean Cruises and raised the price target from $23 to $40.The Cruise Lines Thesis Capacity for cruise lines is likely to remain at just 20% of fourth-quarter 2019 levels and may recover to only 75% in 2021, Didora said in a Wednesday note. (See his track record here.)The...
DoubleLine Capital CEO Jeffrey Gundlach joins Yahoo Finance’s Julia La Roche for an exclusive, wide-ranging interview discussing everything from his outlook on corporate bonds, future of the U.S. economy, and more....
Shares of Transocean LTD (NYSE: RIG) traded slightly higher on Wednesday, but the stock has been among the worst performers in the market so far in 2020.Unfortunately for Transocean investors, even with the stock down 72% year to date, at least one option trader made a big bet that there's more downside ahead in the coming weeks as oil prices remain depressed.The Transocean TradesOn Wednesday morning, Benzinga Pro subscribers received two option alerts related to unusually large Transocean option trades: * At 11:21 a.m. ET, a trader bought 10,000 Transocean put options with a $3 strike price expiring on Aug. 21. The contracts were purchased at the ask price at $1.301 and represented a $1.3 million bearish bet. * Less than a minute later, a trader bought 361 Transocean put options with a $3.50 strike price expiring on Nov. 20. The contracts were purchased near the ask price at $1.95 and...
Tigress Financial Partners Chief Investment Officer Ivan Feinseth joins Yahoo Finance’s Zack Guzman to weigh in on the latest stock market action as the U.S. economy responds to increased COVID-19 cases across the U.S....
