Avis (Snr unsecured; B1, BB-; S) Hertz rumoured for $ raise

• Bloomberg reporting Hertz is looking to raise "at least $700m in secured debt". Its current lines are snr unsecured and rated Caa1/B/CCC+ Triple Neg. 29s are -10pts lower over the fortnight at $63/15% YTW/M & now gives circa 7% over $Avis.
• Flagging given $Avis lines trading volumes seem to have jumped on it (Trace, automated). Re prices, some weakness but within normal vol (could see more on NFP rates move).
• Our view on Avis is unch; "company approach to cap. allocation leaves little to no upside on spreads & potential downside on rough years...carry there for those willing to take on that risk.". Re. the new 7% 29s that has worked well with it trading sideways since issue in Late Feb and similar story on the 30s with tad more weakness (€200m tap last month into the line as well).
• Despite low vol recently, worth noting late last year the €30s were +7pts/-130bps (Z) inside current levels after a "record year" for the co & a over 100bp rally in rates (has rate sensitivity on vehicle financing). Mobico that is in IG (unlikely for long), is committing to IG but not far from trading at Avis December levels (Z+280).

We were on the side-lines with Mobico. Will need to revisit it after a +40bp move over last 2 weeks.