...- On March 17, S&P Global economists said the world's biggest economy had fallen into recession. Based on data and news reported since, we now see the toll on U.S. GDP will be far more severe than we once thought--with the contraction showing up in the first-quarter figure and worsening substantially in the April to June period. - Federal guidelines in the U.S. for social distancing and large gatherings will remain in place until at least April 30, extending the possibility for a prolonged travel and cruise downturn, and the cruise sector will continue to be disproportionately affected until restrictions are lifted and travel can begin. - As a result, Carnival Corp. plans on issuing at least $3 billion in senior secured notes, $1.75 billion in convertible notes, and up to $1.25 billion in common stock to provide liquidity support this year given a temporary suspension of operations and an expected net operating loss. - Although we believe Carnival can begin to recover in 2021 after a meaningful...
