GM and GMAC Bonds up...

Hey, my GM and GMAC bonds are up this AM and the yield is down... This can only mean that people percieves the bailout closer to fruition... or that the market will tank even further within a deeper, darker recession ? Probably the later since treasuries are up also.

Are the bonds pricing in the FED rate cut already ? The CPI report signaled deflation, that may be it.

In any case, the closer we get to a GM bailout, the better. SIRI will most likely not survive without that stream of revenue that GM provides... Unless of course they get deals with NISSAN, TOYOTA and HONDA, do they have those in place ?

Of course they have deals with Nissan Toyota and Honda in place. Those deals, in fact, are much cheaper than the GM deal is. The GM deal is the most expensive deal out of any OEM deal.

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Originally Posted by Newman

Of course they have deals with Nissan Toyota and Honda in place. Those deals, in fact, are much cheaper than the GM deal is. The GM deal is the most expensive deal out of any OEM deal.

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Newman,

While it is true that the GM revenue sharing deal is more expensive, the penetration rate is greater with GM than with Nissan, Toyota, and Honda....