Have a look at http://seekingalpha.com/article/110...ailout-with-yields-as-high-as-45?source=yahoo Personally when something has a 43% yield its either a ponzi scheme or you will lose your money. seriously though. What makes you think the market is wrong in its pricing for GM? If you can't answer that don't touch it.
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.