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LHAGR continues to outperform among airlines - another 4-6bps tighter today

CONSUMER CYCLICALS
  • We FV'd easyJet on Lufthansa's curve, but that double digit gap for the one-notch rating is quickly compressing towards the single digits - EZJLN 28's are +9 wider this afternoon while the LHAGR 28's are -5 tighter (net 14bps of compression).
  • Again news agnostic for LHAGR's rally - it has traded wider to ratings & earnings last week were nothing spectacular but not of concern either. Ongoing strike headlines doing little to sour sentiment.
  • Equities have traded lower since earnings (despite dividend restart) - after EZJLN's new issue 31's its curve is likely to be a floor for LHAGR's moves.

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