The pattern is consistent:

📊 IG spreads: +2bp at 1 week post-shock
📊 IG spreads: -3bp at 1 month
📊 IG spreads: -7bp at 3 months
📊 IG spreads: -9bp at 6 months

Geopolitics is noise for credit. Until it isn't.
#CorporateBonds #CreditIG #JunkBond

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#Credit #CorporateBonds #JunkBond #HighYield

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Moody’s cuts Spirit Airlines’ credit rating further into junk territory By Matt Tracy (Reuters) -U.S. airline operator Spirit Airlines (OTC:SAVEQ) took another hit to its credit rating on Friday after Moody’s Ratings downgraded it two notches deeper into junk territory. In a report accompanying the downgrade on Friday, analysts from the ratings agency highlighted Dania Beach, Florida-based Spirit’s "higher than expected cash burn" compared to its previous forecast when Spirit emerged from bankruptcy in March. "We forecast Spirit will burn more than $500 million of cash in 2025 due to weak domestic leisure demand, elevated domestic capacity and a challenging pricing environment," the analysts wrote. The downgrade follows a similar ratings hit last week from Fitch Ratings, which cited a high likelihood of near-term default in its own one-notch downgrade. Moody’s and Fitch’s ratings actions follow Spirit’s public warning last week after its quarterly earnings report about "going concern" risks facing the company, just months after the carrier emerged from bankruptcy. Analysts at Moody’s noted on Friday how Spirit had just $408 million in unrestricted cash at the end of the second quarter and how it had fully tapped out its $275 million revolver, which matures in March 2028. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Should you invest $2,000 in SAVEQ right now? With SAVEQ making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed SAVEQ alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including SAVEQ, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is SAVEQ poised for similar growth? Don't miss the opportunity to find out.

Click Subscribe #Moodys #SpiritAirlines #CreditRating #JunkBond #StockMarket

Companies with weaker credit ratings tapped the HY-yield bond market for $32bn in May, the most since Oct, acc to data from @JPMorgan - #JunkBond sales in the 1st week of June already have surpassed April’s $8.6bn total.

A Financial Times chart showing that the primary markets for leveraged loans and high-yield bonds has frozen this month relative to April in the years 2021 through 2024.

“Uncertainty has frozen up America’s #junkbond #market. This isn’t an extinction level worry, like turmoil in $29 trillion #Treasury market. But this is a significant #recession #risk.” adamtooze.substack.com/p/top-links-...

Donald Trump’s “liberation day” #tariff blitz has sparked the biggest sell-off in the US #JunkBond market since 2020, signalling growing angst among investors that an economic slowdown will hit corporate America, chart @financialtimes.com www.ft.com/content/b3ad...

Junk Bond Spreads Surge Amid Trade War Fears - BigBreakingWire Spreads on U.S. junk bonds jumped to 401 basis points — the highest level since November 2023 — as investors reacted to fears that President…

U.S. Junk bond spreads rose to 401 bps, highest since Nov 2023, as Trump’s tariff plan sparked trade war fears. Investment-grade spreads also hit 106 bps, showing rising investor caution.

#JunkBond #BondMarket #stockmarketcrash #TrumpTariffs

More 👇

1 Bloomberg: Since the election, a key measure of risk for US #investmentgrade #corporatebonds has fallen to its lowest level since 1998. In #junkbond land, the same metric is the lowest since 2007. And money is being poured into #fixedincome assets. 🧵
#markets #bonds