General Motor's credit spreads continued to tighten last week on the expectation fourth-quarter earnings would be announced this week, according to Markit. As of Wednesday, GM's five-year, credit default swaps were 27 basis points tighter from the week before, trading around 336. Its term loan was up to 101 1/4-101 1/2 last week, mirroring much of the loan market. Its loan-only CDS was trading in the 110-118 range last Wednesday, a few basis points tighter than the week before, a trader said.
Earnings have been delayed because GM is going to restate financial statements. According to a Jan. 11 Securities and Exchange Commission filing, CEO Rick Wagoner told analysts GM has made considerable progress in its North American turnaround and he outlined priorities for its ongoing transformation. He noted that adjusted net income through the first three quarters of last year improved by $4.2 billion for a profit of $1.9 billion. A GM spokeswoman did not return a call.