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Flying Boeing

23 December 2019 by jbchevrel

It was a slow day in CDS/CIS space. At the beginning of the US session, it was reported that Boeing Co. shares were suspended from trading because of some pending big news. It was then reported that Dennis Muilenburg was ousted as chief executive officer of Boeing Co. (BA). Of course this was in the aftermath of the scandal triggered by the two deadly crashes of BA top-selling 737 Max jetliner. David Calhoun (chairman since October) will replace Muilenburg as CEO and president on Jan 13. CFO Greg Smith will serve as interim CEO during a brief transition period. The 737 Max disasters had killed 346 people and had prompted a worldwide grounding. BA’s design decisions and cozy relationship with the FAA are being scrutinized by the Congress while the Justice Department is conducting a criminal probe. Markets reacted rather positively with the stock up ~3% and the 5y CDS tighter -2bp to 53bp at our London close.