Editor’sletter

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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 • LinkedIn • Save this article • Print this page 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 copy this content. Please contact [email protected] to find out more. More on Structured products Structured products gain favour among Chinese enterprises Structured notes – Transforming risk into opportunities Structured products – Transforming risk into opportunities Increased adoption and innovation are driving the structured products market Structured products – The ART of risk transfer How traders and issuers can reduce the complexities of structured products Asian exotics desks need to slash risk Structured Products Washington: 2017 conference overview Risk management Nasdaq whacked with$36 million fine over Aas default

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