GM Strike Might Force Credit Firms to Take Action

The video discusses the uncertainty in the bond market due to a strike, highlighting the lack of movement in bonds and the difficulty in assessing which side has the upper hand. It explains the current bond ratings by Moody's, Fitch, and S&P, noting that Moody's rating is closer to junk status. The video also compares the reactions in the stock and bond markets, emphasizing that bond investors are more patient due to GM's liquidity.

What is the main reason for the lack of movement in the bond market as discussed in the first section?

• The bond market is waiting for a government intervention.

• There is a lack of liquidity in the market.

• Both sides are in a wait-and-see mode due to ongoing negotiations.

• Investors are focusing on stock market trends.

Which rating agency has the bond rated closest to junk status?

• Moody's

• All have the same rating

• Fitch

• S&P

What is the potential change investors are watching for before a downgrade?

• A positive outlook

• A stable outlook

• A negative outlook

• An increase in bond prices

Why are bond investors more patient compared to stock investors?

• They expect a rise in stock prices.

• They are focusing on short-term gains.

• They are confident in the liquidity GM has.

• They are waiting for a government bailout.

What aspect of GM's financials provides comfort to bond investors?

• Strong automotive sales

• Government subsidies

• High stock prices

• Liquidity from cash and financing arm