Jon G

It's Time for GE to Lose Its Triple-A

Felix - in regards to point #2 --- GE (at a spread of 326bps to treasuries for 5 yr bonds) is now trading like a AA - A rated bond

Comparing current spread to T bonds vs. what junk bonds were trading like in 2006 is a terrible argument to make

Additionally, I recall earlier this decade GE bonds were trading like they were going to be downgraded and they weren't

For GE to come to market with new bonds, investors would demand A-AA rates (based on current pricing). In essence, regardless what S&P or Moody's do, GE has been already been "downgraded" by investors