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Boeing’s bonds were under pressure on Monday after a fuselage panel blew-off in a Boeing 737 Max-9 airline mid-flight. Post the incident, the FAA ordered all of the 171 Boeing’s Max-9 variants to be grounded temporarily for further inspections and to determine the root cause. As a result, the company’s shares and bonds dropped on Monday. Its shares fell over 8% and longer-dated bonds like its 8.625% 2031s and 6.875% 2039s bonds dropped by over 2 points to trade at 118.4 cents and 109.9 cents on the dollar, yielding 5.7% and 5.9% respectively. According to ICE data, the CDS for the company also widened by 16bp to 82bp. Bonds of Spirit Aerosystems, the supplier of fuselages for the planes also came under pressure with its 4.6% 2028s bond dropping by 1.65 points to trade at 86.1 cents on the dollar, yielding 8.4%.
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