
Editor’sletter
comment

Those hoping for a unilaterally auspicious beginning to the New Year had a couple of rather large speed bumps to negotiate right off the bat. For starters, General Motors reported a fourth-quarter drop in profits by more than a third just as it began to appear that its credit rating could be cut to junk by Standard & Poor’s. By Inauguration Day, yield margins on GMAC’s 10-year paper had widened by nearly 80bp from the first week of the year, according to MarketAxess.
And Delta Air Lines certainly isn’t offering investors a respite. Delta reported a fourth-quarter loss of $2.2 billion, pushing the price on its paper due 2029 down to 40 points by the middle of January from 51 points during the first week of the year. A report from S&P said that Delta’s rating would remain at a level “indicating imminent default”.
But all will not be lost if Mark Twain’s words are kept close to heart: “There are two times in a man’s life when he should not speculate: when he can’t afford it, and when he can.”
Richard A. Bravo, Editor
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Structured products
Risk management
Nasdaq whacked with $36 million fine over Aas default
Swedish regulator’s fine poses serious questions over default management and margining, while providing few answers
Receive this by email