Fly’s credit stronger than bond yields imply – JP Morgan

Despite rent collection levels trailing its peers, Irish lessor FLY’s bonds are trading at a wider premium than their underlying credit strength implies, according to an analyst note by JP Morgan. FLY’s Q2 results said that it was collecting 47% of its pre-pandemic planned rent, a figure which rose to 84% adjusted for deferments. In its note, JP Morgan’s analysts said that these numbers “trail [its] peers”, however they also pointed to a more positive future collections outlook and welcomed its commitment to transparency. “Note that management improved its deferred rent forecast from last quarter’s $90-$95mm to the current $80-$85mm