Bombardier’s Growing Cash Pile Fuels Rally in Shares, Debt
- Stock’s 75% rise tops TSX this quarter after dismal first half
- Scaled-down corporate jet maker seen as resilient in recession
Bombardier Inc.’s shares have gained 75% since the beginning of July, making it the best performer in the 238-member S&P/TSX Composite Index.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The summer rally in higher-risk stocks is giving a tailwind to a former Canadian stalwart: plane manufacturer Bombardier Inc.
The Montreal-based company’s shares have gained 75% since the beginning of July, making it the best performer in the 238-member S&P/TSX Composite Index. It’s a huge turnaround from the first half, when the company was one of the benchmark’s biggest losers. The bonds have also enjoyed a boost alongside rising prices for junk debt.