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Airport Bond Downgrade

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http://www.ProfitableTradingTips.com - Airport Bond Downgrade

http://www.ProfitableTradingTips.com - Airport Bond Downgrade

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  • 1. BYW W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 2. WHAT DOES THE FITCH AIRPORT BONDDOWNGRADE MEAN FOR THOSE TRADINGAIRPORT MUNICIPAL BONDS? W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 3. NEWS REPORTS STATE THAT FITCH HASDOWNGRADED BONDS ISSUED BY O’HARE,MIAMI, AND DALLAS - FORT WORTH, ALLFROM STABLE TO NEGATIVE. THISHAPPENED AFTER AMERICAN AIRLINESFILED FOR BANKRUPTCY UNDER CHAPTERELEVEN. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 4. MUNICIPAL BONDS SUCH AS MAY BEISSUED BY AIRPORTS ARE GENERALLYCONSIDERED A LONG TERM INVESTMENT.THEY OFTEN ATTRACT HIGH INCOMEINVESTORS BECAUSE THEIR INTEREST ISOFTEN NOT SUBJECT TO FEDERAL, STATE,OR LOCAL TAXES. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 5. HOWEVER, MUNICIPAL BONDS DOAPPRECIATE AND DEPRECIATE IN VALUEAS INTEREST RATES CHANGE. THEY CANALSO SUBJECT TO OTHER FACTORSMAKING THEM A POTENTIALLYPROFITABLE ITEM TO TRADE FOR SHORTTERM PROFITS. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 6. SUCH COULD BE THE RESULT OF THECURRENT AIRPORT BOND DOWNGRADE BYFITCH. AS IS COMMON WITH ALL TRADINGBOTH FUNDAMENTAL AND TECHNICALANALYSIS ARE IMPORTANT. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 7. THE ISSUE FOR INVESTING IN OR TRADINGAIRPORT BONDS FROM THE THREEAIRPORTS MENTIONED ABOVE IS THATTHEY ARE HUBS FOR AMERICAN AIRLINES. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 8. ACCORDING TO A DALLAS – FORT WORTHPRESS RELEASE, W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 9. “DFW INTERNATIONAL AIRPORT IS THEWORLDS FOURTH BUSIEST, OFFERINGNEARLY 1,750 FLIGHTS PER DAY ANDSERVING 57 MILLION PASSENGERS AYEAR. DFW PROVIDES NON-STOP SERVICETO 145 DOMESTIC AND 47 INTERNATIONALDESTINATIONS WORLDWIDE.” W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 10. UNFORTUNATELY FOR DFW A LARGEPERCENTAGE OF ITS PASSENGER TRAFFICIS DEPENDENT UPON AMERICAN AIRLINESCONTINUING TO USE THE AIRPORT IN HIGHVOLUME DURING AND AFTER ITSREORGANIZATION. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 11. DFW, MIAMI, AND O’HARE ALL HAVE THESAME PROBLEM IN THAT THEY COULDEACH LOSE SUBSTANTIAL PASSENGERTRAFFIC FROM AMERICAN IF THECOMPANY CHOOSES TO REROUTE PLANESOR STOP SERVING CERTAINDESTINATIONS. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 12. HOWEVER, PASSENGERS WILL STILL FLYAND OTHER AIRLINES CAN TAKE OVERUNUSED GATE FACILITIES AS TRAFFICWARRANTS. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 13. THOSE INTERESTED IN SUCCESSFULLYTRADING BONDS RELATED TO THEAIRPORT BOND DOWNGRADE NEED TOREMEMBER THAT IT IS NOT A MATTER OFTRYING TO OUTGUESS THE MARKET BUT OFCALMLY AND CAREFULLY EXAMINING THEPROFIT AND RISK POTENTIAL IN EACHINDIVIDUAL CASE. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 14. THERE IS A TRACK RECORD TO FOLLOW INTHE CASE OF THIS AIRPORT BONDDOWNGRADE. AMERICAN AIRLINES, ITTURNS OUT, IS THE 189TH AIRLINEBANKRUPTCY SINCE THE GOVERNMENTDEREGULATED AIRLINES IN 1978! W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 15. AIRPORT BONDS TEND TO BE INSURED.CHECKING THAT OUT FOR EACH OF THEAIRPORT BOND DOWNGRADE VICTIMSWOULD SEEM TO BE FIRST ON THE LIST OFTHINGS TO DO. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 16. A GOOD BENCHMARK TO KEEP IN MIND ISTHAT AN AIRPORT SHOULD HAVEREVENUES OF AROUND 150% OF WHAT ITNEEDS TO SERVICE ITS BONDS. IFAMERICAN PULLS OUT OF DFW, MIAMI, ORO’HARE WHERE WILL THAT LEAVE THEM INTHE SHORT TERM? W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 17. LOOK TO SEE WHAT SORT OF GATEAGREEMENTS EACH AIRPORT HAS WITHAMERICAN. IF THEY CAN QUICKLY ANDEFFICIENTLY REASSIGN GATES IT COULD BEGOOD INDICATION OF FLEXIBILITY ANDPROFITABILITY. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 18. IN ADDITION, IF AN AIRPORT IS IN THEMIDDLE OF A DEVELOPMENT PLAN IT ISEXPECTING TO SEE ITS EXPANSION RESULTIN HIGHER TRAFFIC VOLUME AND MOREINCOME. THE BONDS FOR THE DFW TWOBILLION DOLLAR EXPANSION PLAN COULDBE A PROBLEM HERE ON TOP OF THE TWOBILLION IN BONDS ALREADY IN PLACE. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 19. ALTHOUGH TRADING IN THIS SCENARIO ISNOT SO MUCH TRADING A DISASTER LIKETHE JAPANESE TSUNAMI OR THE MARKETFALL AFTER THE WORLD TRADE CENTERATTACK IT HAS SOME OF THE SAMECHARACTERISTICS. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 20. UNCOMFORTABLE INVESTORS MAY BAILOUT OF THESE INVESTMENTS DRIVINGPRICES VERY LOW. IF THE TRADERBELIEVES THAT BOND PRICES WILLSTABILIZE AFTER A PERIOD OF MARKETINEFFICIENCY, BUYING THESE BONDSAFTER THE AIRPORT BOND DOWNGRADECOULD BE PROFITABLE. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 21. AS ALWAYS THIS DISCUSSION IS ANEXERCISE IN PROFITABLE TRADING ANDNOT A SUGGESTION TO GO OUT AND BUYOR SELL AIRPORT MUNICIPAL BONDS. W W W. P R O F I TA B L E T R A D I N G T I P S . C O M
  • 22. FOR MORE INSIGHTS AND USEFULINFORMATION REGARDING STOCK,OPTIONS, COMMODITIES, AND FUTURESTRADING VISITWWW.PROFITABLETRADINGTIPS.COM.

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