Industrials
From a credit fundamental perspective Azul’s unsecured debt has performed very well in the last three months and remains attractive considering the likelihood of further significant operating and financial progress in the current quarter. However, given the high volatility in the market Reno Bianchi believes an interesting way to play the Latin American unsecured airline market is to go long Azul 7.25% due 2026 while shorting GOL 8.0% due 2026 at an around flat yield level. This swap has the additional benefit of receiving ~4pts upfront while the same swap at the end of Feb would have required paying ~6pts upfront.
Edition: 135
- 13 May, 2022