Why are GM's notes trading as low at the stock?

Discussion in 'Stocks' started by cubical, Jan 29, 2009.

  1. I would go with Burn Yer Money in the 3rd at Aqueduct.
     
    #11     Feb 1, 2009
  2. dont

    dont

    #12     Feb 1, 2009
  3. The market is pricing both correctly...
    Any bond yielding > 40% is a much better indicator of impending bankruptcy...
    Than common trading as a penny stock.

    Sophisticated bond market traders...
    Are basically saying that in the inevitable GM reorganization...
    Which will really be a US government nationalization...
    Bond holders with get something like 20 cents on the dollar...
    Because Obama is in the tank for the UAW...
    And will never allow a liquidation.
     
    #13     Feb 1, 2009