10 August 2020 by jbchevrel
Today Bombardier (BOMB) CDS widened between 2 and 3 points upfront during the day. The offer on 5y contract remains at 30% at the time of writing. The 1s5s curve flattened to close roughly at 17.5%. The CDS moves broadly echoed cash moves, as 6% 22s fell 3.25 points and 7.875% 27s fell 2 points (to 76.5). The bonds are each rated Caa3 by Moody’s and CCC by S&P. Alstom (ALOFP) hinted that it may seek better terms for its €6.2B buy of Bombardier’s train arm after the Canadian industrial reported a Q2 loss on write downs at this unit. The announcement came last week, on Aug 6th and displayed some unexpected performance issues, compared with the information available at the time of the deal (announced in February, EC approval in July), says Alstom. Alstom said in a statement Monday that it’s still confident it can turn around the train unit’s profitability, though.