Comment / How to read the +45% Yellow Corp (Chapter 11-like) relief rally

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“Did u say Yellow Corpse?”

(That came earlier today from a Premium admiral whose base case is Yellow Corp, YELL, will go under.)

No, I didn’t

Monday’s news that Yellow Corp’s lenders had agreed to relax some of the terms tied to its debt facilities, buying some time ahead of default, was indeed great news.

Good enough to justify a +45% relief rally after previous strength from distress, however?

Well…

To start with, and keeping in mind what follows (currently unrelated to the dismal Yellow Corp ...