Wall Street does not like the term “junk bonds;” they prefer to refer to them as ”high yield bonds.” Junk bonds are debt securities rated below Investment Grade by the three major rating agencies (defined as a Nationally Recognized Statistical Rating Organization such as S&P). Over the last 20 months investors have been investing a significant amount of money into [...]
The largest lender to Chrysler is JP Morgan. President Obama’s auto task force heard a blunt message from James B. Lee Jr., vice chairman at JP Morgan, regarding the repayment of the $6.9 billion senior Chrysler debt “and not a penny less.” President Obama used his bully pulpit the next day, stating that Chrysler “could face a disorderly bankruptcy or liquidation”, [...]
