GM Protection Widens After Delphi Filing

Credit protection on General Motors Corp. widened dramatically last week in response to Delphi Corp.'s Chapter 11 filing for bankruptcy protection.

  • 14 Oct 2005
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Credit protection on General Motors Corp. widened dramatically last week in response to Delphi Corp.'s Chapter 11 filing for bankruptcy protection. Five-year credit-default swap spreads on GM widened to 970 basis points on Wednesday from about 770 bps just before the filing, on fears that Delphi, GM's biggest supplier, would demand price relief or cancel contracts.

Protection buying swelled because GM is such a popular, heavily referenced entity. "GM's in everything," said one trader. "And it doesn't help that it's going to report earnings Monday." He noted, though, that spreads tightened somewhat Wednesday afternoon on positive comments from Steve Miller, Delphi ceo CEO, who said he would not ask for price increases and believed a strike was unlikely.

Fitch Ratings lowered GM to BB- from BB Oct. 5, and placed it on credit watch negative, citing added pressure from legacy costs of Delphi's 1999 spinoff and erosion of its own North American market share. Standard & Poor's followed suit Oct. 10, with the same downgrade and outlook. The same day, Moody's Investors Service placed GM's Ba2 senior unsecured rating under review for a possible downgrade. In order to preserve this rating, Moody's analysts said GM will have to "successfully address a number of increasingly burdensome challenges," such as achieving meaningful reductions in cost structure, reducing employment levels and production capacity and reducing its dependence on price incentives "to prop up its sagging market share position in the U.S."

  • 14 Oct 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Citi 253,106.92 930 8.89%
2 JPMorgan 230,914.50 1036 8.11%
3 Bank of America Merrill Lynch 221,389.46 762 7.78%
4 Goldman Sachs 171,499.26 554 6.03%
5 Barclays 169,046.60 646 5.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%