2D·

AirBaltic bonds with 30% p.a. yield ✈️

You could look at that. Due to high oil prices, the situation is difficult for airlines, especially for AirBaltic, which had a net loss of 44m in 2025, but significantly less than the 118m loss in 2024.

However, what creates "confidence" is that Lufthansa $LHA (-2,39 %) about 10% on AirBaltic holds. Moreover, it is rather unlikely that the Lithuanian government would simply let its national airline go bankrupt.

$XS2800678224 (+0,83 %)

https://www.bloomberg.com/news/articles/2026-03-19/air-baltic-s-bonds-tumble-as-mideast-war-drives-up-fuel-costs?embedded-checkout=true

9 Comentarios

Dividendenopi👴@Dividendenopi

Fitch has given it a CCC+ rating, which is pretty much junk, and only recently downgraded it. It's just a high yield bet, but not uninteresting. There are lower coupons at chip shops with less backing. If you like that sort of thing, you can make a small contribution. The 14.5% coupon is nice. And who knows, there may even be price gains to be realized in the medium term if external circumstances improve. But first I have to "process" the creditor vote on my Mutares bond. These are such "niceties" with this type of bond.🤷‍♀️

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Frank@schlimmschlimm

@Dividendenopi And? How do you classify the process? Is this just timing (exits are currently missing) or a structural problem?

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Klein-Anleger@Klein-Anleger

@Dividendenopi Would you like to briefly explain what you mean by that? What happened with Mutares? Bonds are not really my type, but over 10 or even over 20% sounds tempting 😅

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Frank@schlimmschlimm

@Klein-Anleger The following happened at Mutares:

The company failed to meet an important financial covenant from its bond conditions.
This would normally be a problem (breach of contract vis-à-vis creditors).
Mutares is therefore now asking the bondholders to agree to accept the breach and
no longer review the ratio until mid-2026.
As compensation, Mutares is offering a fee of 1.5%.
What does this mean?
Warning signal: the financial situation is apparently tighter than expected.
But probably not an acute drama: no default, business continues. Mutares is creating leeway to improve the situation.
For shareholders in the short term: rather reassuring, but in the medium term everything depends on whether exits and profits come as planned.

Good operating figures, but first cracks in the financial structure, supposedly still controllable, but you have to keep an eye on it. @SAUgut777

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Dividendenopi👴@Dividendenopi

@Klein-Anleger Frank @schlimmschlimm has said it all so far. I don't see the whole thing as an acute drama (yet), but Mutares is slowly becoming a real no-go for me. The company has to communicate repeatedly because the figures are not quite right. And now, with a cut-off date of December 31, 2025, they have violated the point in the bond conditions regarding the ratio of net debt to equity and are now saying oops, sorry. As Frank mentioned, this is a breach of contract, so the bondholders would have the right to call in the bond and Mutares would have a problem raising the money. Mutares must now see to it that the creditors accept the pain and suffering of an additional premium and keep the promise that the convenant will be back within the contractually agreed range by the middle of the year. This increases the pressure on Mutares to increase cash flow through further exits in order to be able to service the debt. So far, I think the whole thing has been taking place rather in the background, the setback on March 19, when the deadline went out to the bondholders, from over € 29 to € 26.60 was still relatively moderate, we know other things. Personally, I've had enough, I already dumped the shares last year in the course of the BaFin investigation and will probably sell the bond tomorrow if the price remains at 99%. The last coupon payment was just made and I bought it at 95% at the time. So everything is fine, but I'm no longer in the mood for this kind of unreliability. For those who are interested, I have the 24/29 bond <security:n/a:NO0013325407> , the coupons ran from 9.19% to 8.3%.

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Frank@schlimmschlimm

@Dividendenopi Thank you dear for your assessment! Have a nice rest of the Sunday!

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Frank@schlimmschlimm

What does our good @SAUgut777 have to say about this?

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Dividendenopi👴@Dividendenopi

@schlimmschlimm I don't know, he probably doesn't read such posts because it doesn't fit into his environment, maybe your mention can encourage him 🤷‍♂️

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Frank@schlimmschlimm

@Dividendenopi Yes, it doesn't really belong in this post. A bit off topic. That's why I pinged him ;-)

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