GE shares fell for months before its credit spreads started to widen, which Tchir believes shows "the current concern surrounding the credit can be fixed."
"GE should not see a material increase in their total cost of borrowing in 2019, despite spread widening in the secondary markets because of their debt profile," Tchir writes, as ~$26B of the company's $105B of debt is maturing in the next two years, mostly in 2020.
Many analysts are worried about the consequences of a potential downgrade of GE's credit to junk; it is the world's no. 6 most indebted non-financial company, big enough to shake the entire debt market.
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