Singapore Airlines had earlier issued a retail bond in early 2019.
It’s currently trading at about 90 cents on the dollar reflecting those challenges.
Although the initial coupon was 3.03%, the fact that it has fallen below PAR means that its yield to maturity is far higher at >6%.
The next few months will be extremely challenging for SIA given the evaporation of demand.
The Business Times had a recent article on Singapore Airlines highlighting that OCBC Credit Research had lowered its credit rating given the current challenges that it faces and diving into the main challenges it faces.
A lot of it is going to be dependent on factors outside its control.
It certainly has a stronger balance sheet than most other airlines but the scale of what’s happening is unprecedented.
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There has been plenty of talk of