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Opinion
Brian Chappatta

Cruise-Line Bonds Buoyed by Huge Yield Buffer for Now

Investors are bidding up junk debt prices of Carnival and Royal Caribbean despite a steep downgrade from Moody’s.

High yields lift all boats.

High yields lift all boats.

Photographer: Daniel Slim/AFP/Getty Images

Imagine this scenario unfolding in the span of just three weeks:

This was August for Carnival Corp. and Royal Caribbean Cruises Ltd.