Auto Asset-Backed Bonds Rally as GM’s IPO Looms: Credit Markets
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The car and truck industry is gaining the confidence of bond investors as sales soar and General Motors Co. prepares an initial public offering of stock this week.
Yields on securities tied to automobile sales have narrowed to 80 basis points more than the benchmark swap rate from 95 basis points three months ago, according to Barclays Capital. Spreads on bonds tied to other consumer debt, such as credit-card and student loans, were unchanged at 73 basis points.