GM/Ford Junk and disorderly

That General Motors’ credit rating would be junked this year was one of the worst kept secrets in the financial markets. Nevertheless, ratings agency Standard & Poor’s retained an element of surprise when it pulled the trigger. Not only did it act sooner than anticipated; it junked rival carmaker Ford as well for good measure. That means nearly half a trillion dollars of debt, fully $453bn, passes from investment grade to junk in one go. Two big issues now confront the markets. One is how the h...