Airport Muni Debt Flies High as U.S Air Travel Rebounds

June 25, 2021, 4:54 PM

Airport bonds have rebounded this year as investors bet on the economy’s revival. Now that the reopening is here, CreditSights says the debt still has room to run.

Airports are teeming with passengers newly vaccinated against Covid-19 and the facilities are set to get $8 billion more in federal aid. Coupled with strong demand for higher-yielding bonds, the risk premiums on airport debt can narrow further, said Patrick Luby, municipal strategist for CreditSights. Muni bondholders will have about $106 billion to reinvest in July and August, the heart of the summer travel season.

“There’s very few places that have ...

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