(Bloomberg) -- Oil futures in London and New York are headed for their strongest close since early March, on optimism that fuel demand is recovering as lockdowns are lifted and major producers scale back output.Prices climbed for a third day as analysts at Bank of America raised their Brent crude forecasts, citing in part a faster demand recovery and the OPEC+ group’s commitment to curbing supply.Demand is improving in countries including Spain and India, while New Jersey Governor Phil Murphy said that Atlantic City casinos and indoor dining will reopen statewide on July 2. However, concerns about a potential second wave of the virus may limit further gains for oil.“You see demand picking up and you see supply being relatively constrained,” said John Kilduff, a partner at Again Capital. “If there is any prospect whatsoever of a faltering here in terms of reopenings and demand continuing to ramp back up, we...
(Bloomberg) -- The coronavirus-related economic shutdowns have led to one arcane consequence: delaying California’s sale of $10.5 billion in bonds to finance future wildfire costs.Power customers are using less electricity with shops and businesses closed, and that has slowed the efforts to pay down bonds sold in the last energy crisis that must be defeased before the new debt is offered.The delay means the state can’t take advantage of the current rally in the $3.9 trillion municipal market. While investors in need of tax-havens generally seek California bonds, the market now is seeing even greater demand for such securities. Bondholders are set to receive a wall of debt payments this summer that’s expected to exceed the amount of new securities on tap.“It’s hard to anticipate what the fall is going to look like,” said James Dearborn, director of municipal credit research at DWS. “If they were issuing bonds today, I think...
Ackman, whose New York-based hedge fund manages more than $10 billion in assets, can make additional commitments and boost the size of the capital raise to $6.5 billion, according to a filing with the U.S. Securities and Exchange Commission. The special purpose acquisition company (SPAC), Pershing Square Tontine Holdings, Ltd, plans to go public with 150 million units at $20 each, according to the filing. Reuters first reported Ackman's plans earlier this month....
Billionaire investor William Ackman, whose hedge fund is delivering some of the year's best returns, said on Monday he was looking to raise $3 billion and commit at least $1 billion for a new blank-check investment vehicle, the largest ever of its kind. The initial public offering of the special purpose acquisition company (SPAC), Pershing Square Tontine Holdings, Ltd, plans to offer 150 million units at $20 each, according to a Securities and Exchange Commission filing. Pershing Square has the option to add more, for a total of up to $6.45 billion, the filing said....
Although systemwide net flight bookings in the U.S. declined in the week ending June 14, it was a meaningful improvement from the prior week's decline, driven by both domestic and international bookings, according to BofA Securities.The sell-side firm sees continues strength in the leisure segment. The Allegiant, Southwest Analyst Andrew Didora maintained Buy ratings on Allegiant Travel Company (NASDAQ: ALGT) and Southwest Airlines Co (NYSE: LUV), with unchanged price targets of $140 and $44, respectively.Takeaways On Allegiant, Southwest Recent conference calls with Allegiant Travel and Southwest Airlines management support the data showing a recovery in leisure demand and highlighted the strengths of both carriers in managing through the pandemic, Didora said in a Monday note. (See his track record here.)Both companies have solid liquidity positions, the analyst said.Even without additional government loans, Allegiant Travel has enough liquidity through 2022 and Southwest Airlines through mid-2023 at their present cash burn rates, he...
