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Carnival (CCL Snr Unsec; B2 Pos/ BB) Levels

CONSUMER CYCLICALS
  • Not sure what's going on with CCL 29s vs. 30s, both working out to '29 but 29s left -25bps tighter. Note 30s are the shorter duration line (on the higher coupon). We continue to see value in diversifying FOY/AFFP exposure with CCL - former 2 are not targeting IG ratings while CCL is. Adding to that its standalone metrics are more impressive. Drawback is you will not have any govvie support with it.
  • 30s are at Z+OAS+277/5.1% keeping up with most of AFFP's sell-off though shorter AFFP 28s at +250 are looking the widest.
Last note on Carnival here

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