Municipal Bond Forum
On “Bullish on GM?” and “GM Considers Alliance” cont’d #4
Q
Your opinion on GM corporate bonds is confusing. How can there be an upside when you speak about possible bankruptcy?
A
James A. Klotz responds:
As with any investment, the potential gain is commensurate with the risk. If there were no concerns regarding the viability of General Motors, yields would not be in the 9.50% to 11.50% range.
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