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As Americans Flock to Cancun, a Wild Bond Rally Is Ignited

  • From Mexico to Brazil, air travel is posting a rebound
  • Deeply distressed airline bonds are now soaring in value
Updated on

There was a period last year when investors had all but given up on the Brazilian airline run by David Neeleman, the man who made his name by founding JetBlue Airways years earlier. Bonds of his budget carrier, called Azul SA, had sunk to a mere 35 cents on the dollar, signaling investors were bracing for a painful default.

Today, they trade at 93 cents.