(Bloomberg) -- American Airlines Group Inc. launched a $2 billion junk-debt offering on Monday as it looks to shore up liquidity amid a hesitant return to flying during the pandemic.The company is marketing a $1.5 billion secured junk bond maturing in 2025 and a $500 million four-year loan, according to people with knowledge of the matter. Based on initial discussions with investors, the loan is being offered at a spread of 9.5 percentage points over the London interbank offered rate and at a discount of between 95 cents to 96 cents on the dollar, said the people, who asked not to be named discussing a private transaction.The debt will be secured by slots, gates and routes across the world in the United States, Latin America, Asia, and Europe. The company was sounding out investors last week for a potential five-year secured note at a yield of 11%, according to other people...
When searching for risk/reward plays, look no further than penny stocks. These names trading for under $5 per share are considered to be some of the most controversial on the Street, and divide market watchers into two factions: critics and fans.The former brings a valid argument to the table. Stocks don’t just end up trading at such low levels; typically, there’s a very real reason for their bargain price tags. This can be weak fundamentals or headwinds that are too strong to overcome.As for the latter, the potential for an investment worth only pocket change to appreciate even a seemingly insignificant amount, the result of which could be massive percentage gains, is too enticing to ignore. Not to mention the low share price means you can carve out a bigger stake for less money upfront.The implication for investors? Due diligence is essential, as some penny stocks might not have what it...
Stocks gave up overnight gains and fell Monday morning as market participants weighed prospects that the virus-stricken economy would rebound quickly against fears over an extended rise in new cases over the weekend....
Yahoo Finance’s Brian Sozzi and Alexis Christoforous speak with Dr. Anand Parekh, Bipartisan Policy Center Chief Medical Advisor, about President Trump’s surprising comments at his rally in Tulsa, and the recent spike in coronavirus cases. ...
(Bloomberg Opinion) -- Following Wirecard AG’s confirmation on Monday that 1.9 billion euros ($2.1 billion) of the cash it reported probably doesn’t exist, the question arises whether the German electronic-payments group will survive in its present form.Even if Wirecard can avoid a liquidity crunch, there’s the issue of whether a fintech can hang onto its customers and partners after revealing such an epic failure of internal controls and risk management. The company authorizes and processes electronic payments for both business clients and consumers, so trust is essential. New boss James Freis will have to keep creditors at bay, and overhaul a rotten corporate culture. The stock has plunged 85% in the three days since Wirecard’s auditor, Ernst & Young, said roughly fourth-fifths of the net cash reported in the last audited accounts couldn’t be verified. Chief Executive Officer Markus Braun resigned, yet the company is still capitalized at almost 2 billion euros ($2.2 billion). Shareholders...
