Bombardier Bondholders Suffer as Jet Delays Burn Through Cash

  • Credit-default swaps soar as order drought reaches 11 months
  • CEO Bellemare's `transformation plan' is put to the test
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Bombardier Inc. bondholders are feeling the pain from the company’s accelerating cash consumption.

The cost to protect Bombardier bonds from default more than doubled since June 30, soaring the most among members of Canada’s benchmark Standard & Poor’s/TSX Composite Index. Investor unease also is showing up in prices for the 7.5 percent notes due in 2025: Five months after being issued, they’re yielding 13.4 percent.