the U.S. to Europe and Asia widened 2 basis points
GM, bailed out last year by the U.S., plans an IPO after reporting $2.16 billion in third-quarter net income. Ford Motor Co.’s nine-month earnings of $6.37 billion are more than double its $2.72 billion in profit for all of last year.
Elsewhere in credit markets, relative yields on corporate bonds worldwide rose for a second week. In the U.S., the cost of protecting company debt from default had the biggest weekly increase since May and junk bond sales climbed the most in seven weeks as investors shrugged off the growing fiscal crisis in Ireland. Prices of leveraged loans rose for a third week.
Spreads on company debt from the U.S. to Europe and Asia widened 2 basis points, or 0.02 percentage point, last week to 167 basis points and are up 3 basis points this month, according to Bank of America Merrill Lynch’s Global Broad Market Corporate Index. Yields increased to an average 3.58 percent from 3.42 percent on Nov. 5. Yields were above 4.25 percent a year ago.
