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IAG (IAGLN; Baa3, BBB- Pos) 1H (to June) IAG 29s bid

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IAG 29s are well bid this morning; -12bps and follows a -5bp move yesterday.

As we said other day we see value on the line. We also recommend investors eye the Dufry curve (27s OAS+170) for airport retailer exposure and for carry/HTM investors the Finnair 29s (Z+246) who has bottom of the pack fundamentals but has strong government ties/protection.

The IG/HY spread in Airlines (circa 100bps) is hard to ignore. We will need to circle back on Air-France though.

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