JRJ

Playing the Auto Bailout With Yields as High as 45%

So what is the downside risk (worst case scenario) - as with Freddie and Fannie debtholders get nothing ??


On Dec 10 09:37 AM Dan Weiss wrote:

> A couple of things to keep in mind. The mini-bonds are unsecured
> bonds that trade on exchanges therefore they are naturally less risky
> than the equity but at the same do still have risk. THat being said
> most are trading at about 16 cents on the dollar (they have a par
> value per share of $25). GM has said on multiple occassions that
> they plan to try to restructure this debt which would most likely
> result in a double or more from current levels if it is completed.