GE Bonds Keep Plunging, Pushing Through All-Time Lows
- Bonds due 2034 have widened 140 basis points since September
- Corporate credit market has been alarmed by GE’s big debt load
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General Electric Co.’s bonds haven’t yet found a bottom. Several of the firm’s most active securities have widened more than 30 basis points since yesterday’s close and are well over 100 basis points wider than where they traded a month ago.
This move comes as investors fret about GE’s giant debt load and wonder whether the company’s weakness is feeding into the broader corporate credit market. Guggenheim Partners Chief Investment Officer Scott Minerd tweeted on Tuesday that the company’s problems aren’t isolated, and “the slide and collapse in investment grade credit has begun.” Those concerns were echoed by Jason Shoup, head of global credit strategy at Legal & General Investment Management America.