Thread: GMs Bankruptsy very likely

^ perfectly said,

corporate bond holders are there for the yield, not to cover a risk

that's the role of the US Treasury Notes,

Originally Posted by sabang

Employees are senior Creditors to Bondholders, and the most senior Creditor of all is the US government. So who's gonna call the shots? The fact is, Obama could screw them over more than he's doing- and a true Libertarian would argue that he should.

Depends when you bought GM Bonds I guess- old bonds may have been bought back when GM was actually Blue Chip- but most Bonds are owned by speculators. They bought on the 'too big to fail' hypothesis and they were partly right- but they failed to take into account that a company can survive as an operating entity by going into receivership, and throwing out it's Stock and Bondholders.

In this case, I heard the bondholders and the trust had equal dibs. Yes, also in this case the US govt have seniority because of the bailout funds. But it would be a cold day in h*ll that I would call bondholders "speculators." I reserve that for holders of stock and derivatives.

GM makes rubbish.

Originally Posted by watterinja

GM makes rubbish.

nothng new there

Originally Posted by Jet Gorgon

But it would be a cold day in h*ll that I would call bondholders "speculators." I reserve that for holders of stock and derivatives.

Don't generalise

some bondholders are there for a quick profit

same same, stockholders

some not

^ For Corporate bonds, it's mostly yield, that is speculation

speculation is not necessarily short term,