The cost of junk status

Gloomy predictions regarding GM’s tenuous status as an investment-grade credit are leading many investors and analysts to start planning for the day that GM actually slips into junk territory. Richard Bravo reports

Some financial shocks happen suddenly, taking the market by surprise and forcing investors into a state of panic. Other shocks happen slowly, unraveling before everyone’s eyes as the inevitable consequences take hold. General Motors’ slow spiral toward the junk market partakes of the latter category, with many analysts expecting the Detroit, Michigan-based automobile behemoth to be relegated to the speculative-grade market before the end of the year.

Even though the final outcome of GM’s current