Copying and distributing are prohibited without permission of the publisher.

Watermark

Chrysler Spreads Rally After Job Cuts

16 Feb 2007

DaimlerChrysler's 8 1/2% '31 bonds tightened eight basis points and its five-year credit default swaps tightened five to six points last Wednesday after the auto producer announced it is cutting 13,000 jobs at its Chrysler operation in North America and could sell or spin-off the unit.

DaimlerChrysler's 8 1/2% '31 bonds tightened eight basis points and its five-year credit default swaps tightened five to six points last Wednesday after the auto producer announced it is cutting 13,000 jobs at its Chrysler operation in North America and could sell or spin-off the unit.

Other autos remained mostly unchanged. "There's been fairly low volatility," said a trader. General Motor's '33 bonds were up 1/4-3/8 of a point. GMAC's bonds were also up slightly and its CDS tightened two basis points to around 100-102. Five-year CDS for Ford Motor Co. tightened five basis points, according to a trader.

16 Feb 2007