As U.S. Airways Group Inc. (USAG) teeters on the verge of bankruptcy, the company’s high yield bondholders may have to take it on the chin, said a high yield source. Some of the USAG’s bonds are backing older model planes that have depreciated faster than the bonds have amortized, said the analyst who requested anonymity. If the company files Chapter 11, bondholders would stand to recover less than their initial investment, said the analyst, declining to give an exact range.
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