There were several aspects of 2004 that bond investors would be happy not to see repeated in 2005. The low level of volatility and the generally moribund spread action were two of them. These are not factors that we had to complain about in the auto sector however. Here the story was deteriorating fundamentals, ratings risk and highly volatile spreads. We may be in a new year, but so far in 2005 the auto sector is singing the same old tune.
The problems of Ford and GM’s loss of market share a