The earnings statement sent its stock price plunging 32% to a 12-year low, and rating agency Fitch quickly placed the company on negative watch. The credit was priced at 300/340bp in the credit default swap one week ago. It tightened back to 250bp-mid earlier this week as renewed positive sentiment accompanied the rally in global equities. Only two weeks ago five-year protection was priced at 160/170bp.
Volatility was also seen in US autos this week as Standard and Poor’s downgraded General M