Cars and Drivers
A Contrarian View On GM (GM), And A Bad One
Published:
Last Updated:
JPMorgan likes GM’s (GM) bonds. On the surface what is not to like?
According to Reuters, "GM’s benchmark 8.375 percent bond due 2033 has dropped to 25.75 cents on the dollar, from 36.5 cents at the end of October, according to MarketAxess. The bonds had traded at more than 80 cents on the dollar at the beginning of the year and currently yield 32.5 percent."
If GM goes Chapter 11, which is likely if the federal government does not come in soon, common shareholders will see their investment drop to zero. Depending on what a bankruptcy court does with UAW and bank loan claims, the bonds may end up worthless as well.
Douglas A. McIntyre
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
