General Motors Co. bonds might soon slide into reverse, analysts warn, as the company’s contract negotiations with the striking United Auto Workers union head toward their third week.
So far investors have yet to pay the risk much attention, with GM’s debt barely budging over the past two weeks, even as the company loses more than $50 million a day with workers on the picket line. But as the unrest carries on longer than expected, risk premiums are poised to rise, as does the possibility that credit raters take negative action.