Leisure Credit Perks From Consumer Spending?

Outsized activity in leisure, lodging and gaming is unlikely to carry over to 2025, but the current indulgence by consumers and businesses could persist through much of 2024, we believe, pushing bond spreads tighter against consumer cyclical alternatives. Weakness in the restaurant and rental car segments show the smooth sailing of 2023 may be gone, but cruise lines, hotels and casinos could still record robust cash flows, which they may spend on capex, M&A or shareholder rewards once balance sheets are in order.