Short Squeeze Bumps Up American Airlines Bonds

American Airlines' bonds jumped eight to 10 points last week as short sellers clamored to buy back bonds.

  • 09 Dec 2005
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American Airlines' bonds jumped eight to 10 points last week as short sellers clamored to buy back bonds. The company's 9% '12 bonds were up eight points to trade at 86, continuing a climb that started in November, when they traded as low as 69. Analysts attributed falling fuel prices and positive industry forecasts in 2006 for a rise in the value of American Airlines debt ­ which in turn sent short sellers scrambling to cover positions.

"Finding bonds to borrow is hard because there are not a lot that want to lend securities," said Roger King, an airline analyst at CreditSights. "As prices have gone up, people have gone into the open market to buy bonds and deliver them back. It has probably been hard to buy them." A trader concurred, adding that there is only a small amount of unsecured paper in the market.

A spokesman for American Airlines said the company is working to increase revenue and decrease costs outside of bankruptcy.

  • 09 Dec 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 241,652.19 924 8.19%
2 JPMorgan 223,721.63 996 7.58%
3 Bank of America Merrill Lynch 216,064.78 722 7.32%
4 Barclays 184,894.55 671 6.27%
5 Goldman Sachs 158,954.58 518 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 32,522.19 61 6.56%
2 BNP Paribas 32,284.10 130 6.51%
3 UniCredit 26,992.47 123 5.44%
4 SG Corporate & Investment Banking 26,569.73 97 5.36%
5 Credit Agricole CIB 23,807.36 111 4.80%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 10,167.68 46 8.81%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%