Distressed Volatility

The Biggest Problem Detroit's Big Three Face

GM needs billions of bridge loans to keep itself out of bankruptcy. The current ratio is too negative and has been squeezed for the past year. Cash is dwindling to the operating minimum. The question is can they sell assets/draw down inventories/raise equity in time? I looked at their numbers in blog also quoted a bunch of analysts. www.distressedvolatili...

$634B Spending Bill Now In Congress Provides Loans for Automakers

GM Exchange Traded Unsecured Notes $XGM, $GMS, $HGM Being Dumped, If there is bankruptcy risk, why isn't common being trashed? Are they dumping to realize losses and load up on the common, or are they running away from the unsecured debt because they're now probably behind the gov guaranteed debt. wtf specific write up tinyurl.com/4wx8sh

Ford and GM Living on Borrowed Time

I'd get into the ETNs, I dont' think this goes bk where senior debt holders lose out, they restructure possibly as a consequence to the common holders. Average down on the debt and make 15-16% with potential upside. If this goes down to $7 like Merrill stated, I'd even buy some puts along with your bonds. They will get through this, they need to shed the poor performing brands and rigourously get into the small eco vehicle transition. By then it will be 2013 and oil will be heading lower. They'll get through this, if not sell off all the parts to the foreign auto makers! :(
blog:distressedvolatil...

Big Three Automakers: Recapitalization or Bankruptcy?

THE ETNs are starting to look attractive! Stay far far away from the equity that's for sure.. They will restructure, at the expense of shareholders like analysts have been saying. They could liquidate poor performing brands below par, shed other poor performing assets, raise cash with another stock offering and try to get through the oil bubble. Start a smart car line!