An analyst at General Motors with the management of the structure of the automaker’s debts must be charged to decide whether and how the interest rate risk of the Company’s recent debt offerings change. The analyst must take into account GM liability management policies of the company existing interest rate risk, his expectations for the interest and take the wide range of savings products. He must decide whether to give leave, the fixed income instrument unchanged or int … Read more »

An analyst at General Motors with the management of the structure of the automaker’s debts must be charged to decide whether and how the interest rate risk of the Company’s recent debt offerings change. The analyst must take into account GM liability management policies of the company existing interest rate risk, his expectations for the interest and take the wide range of savings products. He must decide whether to leave unchanged the fixed-rate instrument or enter into a swap, cap, interest rate option or swap transaction option.
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from
Peter Tufano
Source: Harvard Business School
18 pages.
Publication Date: Mar 24, 1993. Prod #: 293123-PDF-ENG
Liability Management at General Motors HBR case solution

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