{"id":146669,"date":"2020-08-30T13:08:41","date_gmt":"2020-08-30T20:08:41","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=146669"},"modified":"2020-08-31T08:42:50","modified_gmt":"2020-08-31T15:42:50","slug":"pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/","title":{"rendered":"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds"},"content":{"rendered":"

Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including casino operators, particularly if a coronavirus vaccine comes to market.<\/p>\n

\"PIMCO
PIMCO Chief Investment Officer Mark Kiesel believes travel and leisure bonds, including casino debt, have rally potential. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n

Airlines, gaming companies, and hoteliers, to name a few, were among the leisure segments most repudiated during the March financial market selloff caused by the initial wave of COVID-19 cases.\u00a0 Specific to the gaming industry, bond prices tumbled, as rating agencies rushed<\/a> to lower outlooks and ratings on debt issued by some of the group’s biggest domestic and international operators.<\/p>\n

Still, integrated resort operators were able to access capital in the debt and equity markets<\/a>, even during the darkest days of the initial coronavirus surge. That allayed concerns about the companies’ ability to survive in a zero-revenue climate.<\/p>\n

Even if you look at the deeply-affected COVID-hit sectors, these companies have 20 to 36 months of liquidity,\u201d<\/strong> said Mark Kiesel, co-manager of the PIMCO Total Return Fund in an interview with Bloomberg<\/i>. \u201cAny vaccine that comes out in the next 6 to 12 months, I think you could see a rebound, and that\u2019s the next wave, or the rally.\u201d<\/strong><\/p><\/blockquote>\n

Kiesel said the bond house is overweight travel and leisure debt in a \u201cprudent way.\u201d<\/p>\n

Back from the Brink<\/h2>\n

As stocks tumbled and as US casinos were shuttered in March, concerns ramped-up about gaming companies’ ability to survive the pandemic.<\/p>\n

Several months later, some casino giants are as well-capitalized as they’ve ever been.<\/p>\n

\n

For example, Las Vegas Sands (NYSE:LVS). The biggest US company in the industry by market capitalization, LVS says it has the cash to proceed with major Asia-Pacific enhancements while surviving 18 months in a no-revenue environment. Rival MGM Resorts International (NYSE:MGM), the largest operator on the Las Vegas Strip, has $8.1 billion worth of liquidity<\/a> as of June 30.<\/p>\n<\/div>\n

PIMCO’s Kiesel told Bloomberg <\/i>his firm has loaned money to \u201cleaders\u201d in the hotel and gaming industries, as well as to airlines via credits that are backed by new planes.<\/p>\n

Airlines Take Off<\/h2>\n

The airline industry rebounding is essential to Sin City’s recovery because most travelers arrive<\/a> at the largest US gaming mecca via passenger jet.<\/p>\n

That makes Las Vegas vulnerable to airlines’ recent moves to slash routes to conserve cash. Wall Street analysts believe it will be 2022 at the earliest before domestic carriers see capacity levels on par with pre-crisis norms. Compounding Nevada’s woes is that drive-in traffic from neighboring Arizona and California remains slack.<\/p>\n

However, there are incremental signs of improvement. In July, the consumer price index (CPI), the primary gauge of inflation in the US, rose 0.60 percent month-over-month. Relevant to gaming companies, airfares increased 5.4 percent, rental car prices jumped four percent, and hotel rates rose 1.2 percent, according to PIMCO research.<\/strong><\/p>\n

\u201cTaking a step back, US prices in travel and leisure services, in general, have been much more flexible during the COVID-19 crisis versus what we\u2019ve seen in past crises,\u201d notes the asset manager.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including casino operators, particularly if a coronavirus vaccine comes to market. Airlines, gaming companies, and hoteliers, to name a few, were among the leisure segments most repudiated during the March financial market selloff caused by the […]<\/p>\n","protected":false},"author":46,"featured_media":146671,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nPIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org<\/title>\n<meta name=\"description\" content=\"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org\" \/>\n<meta property=\"og:description\" content=\"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-30T20:08:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-08-31T15:42:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1334\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/\",\"url\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/\",\"name\":\"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg\",\"datePublished\":\"2020-08-30T20:08:41+00:00\",\"dateModified\":\"2020-08-31T15:42:50+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg\",\"width\":2000,\"height\":1334,\"caption\":\"PIMCO Chief Investment Officer Mark Kiesel believes travel and leisure bonds, including casino debt, have rally potential. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org","description":"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org","og_description":"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including","og_url":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-08-30T20:08:41+00:00","article_modified_time":"2020-08-31T15:42:50+00:00","og_image":[{"width":2000,"height":1334,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/","url":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/","name":"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds - Casino.org","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg","datePublished":"2020-08-30T20:08:41+00:00","dateModified":"2020-08-31T15:42:50+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Fixed income manager Pacific Investment Management Co. (PIMCO) sees opportunities with corporate debt issued by travel and leisure companies, including","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/kiesel.jpg","width":2000,"height":1334,"caption":"PIMCO Chief Investment Officer Mark Kiesel believes travel and leisure bonds, including casino debt, have rally potential. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/pimco-enthusiastic-on-travel-leisure-debt-including-casino-bonds\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"PIMCO Enthusiastic on Travel, Leisure Debt, Including Casino Bonds"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/146669"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=146669"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/146669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/146671"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=146669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=146669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=146669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}