The Best Money Moves to Make Now Best Moves in a Bad Economy Blog GMAC Leaves Bondholders in the Lurch – What Are Safe Investments?
GMAC Leaves Bondholders in the Lurch – What Are Safe Investments? Wednesday November 12, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)The financial crisis has caused GMAC bonds, considered an ultra-safe investment by many individual investors, to drop 75% in value. Although GMAC has made good on its SmartNotes until now, its $7.5 billion of losses in the past year raise doubts about its abilty to pay future debt. Find out what are truly safe investments. What It Means to You SmartNotes were designed to appeal to investors seeking interest income, such as older people and retirees. They were sold in denominations of $1,000 and allowed investors’ spouses to sell the bonds back to the issuer if the owner died. Last week, GMAC said its mortgage unit may fail, thanks to the subprime mortgage c
