Term loans for Ford Motor Co. and General Motors traded a little softer Wednesday after DaimlerChrysler Chief Executive Dieter Zetsche stated the company is in talks to potentially sell Chrysler. Ford's term loan "B" was trading around par 1/8-3/8 while GM's was trading around 5/8-7/8 plus, according to a trader. Loan-only credit default swaps for Ford were slightly wider at 240-250. GM's LCDS were out about five basis points on the day to around 176-191, the trader said. Kirk Kerkorian's investment vehicle, Tracinda, said in a letter to DaimlerChrysler's board that it is prepared to offer $4.5 billion to buy the unit, according to a Wall Street Journal article Thursday, at press time.
Auto Loans Trade Softer With Chrysler News