Cars and Drivers
Will Auto Co. Credit Default Swaps Get Swamped? (GM)(F)
Published:
Last Updated:
It may be old school but for every action their is an equal and opposite reaction.
Take the auto bailout. It turns out that creating a car czar with special powers over The Big Three could trigger payments under credit default swaps cover debt in the companies.
According to MarketWatch, "Banc of America Securities analyst Glen Taksler noted that the International Swaps and Derivatives Association, the trade group that acts as a standard-setter for credit-derivatives trading, says one trigger for a bankruptcy credit event is the appointment of an administrator, trustee or similar official to oversee all or most of an entity’s assets."
Between GM (GM) and Ford (F) there are almost $6 billion in net swaps outstanding.
Douglas A. McIntyre
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
