AFSCME 3357-HOF'S BLOG

Is GM REALLY "The Lindsey Lohan of the Bond Market"?

According to analyst Shelly Lombard, General Motors is the "Lindsey Lohan of the Bond Market." If you know what that means, you've got one on me. Yet, somehow, it just sounds right. You can read about it in this article at nationalpost.com.

The article seems to suggest that GM will have trouble borrowing in the debt market the money necessary to buy time for the turnaround. That's why I posted last month that what GM really needs is an EQUITY offering, preferably starting with a RIGHTS offering aimed at current shareholders. GM has to do this because any equity offering worth undertaking will dilute most of the owner share of current shareholders.