Continuing upward pressure on oil prices coupled with disheartening news from Delta Airlines in its 10-k dinged aircraft ABS bonds in the secondary market last week, a source reported.

In its annual report, the legacy carrier said that it did not expect to have enough cash to cover leases, debt payments and other obligations, and would likely have to tap into available cash, including the $250 million it borrowed from American Express Co. last year. Delta warned that if conditions did not improve, it would be forced to seek Chapter 11 bankruptcy protection.

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