Antolin - comment - Positioning for 28's↑ 30's↓

We have unwound our Long/Short 30s/28s position for 61.5/63 and will be looking at potentially the inverse strategy going into the business end of this capital structure. We can imagine no scenario in which the 30s fare better than the 28s, safe for a higher coupon, which is now at risk. However, there are multiple scenarios in which the (two-bond) curve steepens. 

Antolin is managing for cash to increase optionality as its banks have rolled out waivers for the year, and management explores all options. 

Results continue to disappoint. Sales are globally LfL negative, less so in NA, where new contracts provide a relative uplift. More so in Asia, where the market is tilting towards home-grown brands. Expenses are weighed down by restructuring costs, and the outlook does not foresee a turnaround before 2028. Bonds should not move much on quarterly earnings, but will move once the company makes an announcement on how it wishes to restructure this balance sheet.