Carmakers' bonds look good value in the short term but long-term challenges persist

The auto sector and credit markets have long had a love-hate relationship.

Back in 2005, when the prospect of downgrade to high yield for Ford and General Motors first loomed large, some thought that credit markets might implode. They eventually did, although not for another two years. Roll the clock forward 15 years and are we staring into a similar abyss? Ford was downgraded in September to high yield by Moody's, but remains investment grade-rated by both Standard & Poor's and Fitch, and as such still qualifies as investment grade by index providers. Why Tesla will lose its lead In September and October, General Motors suffered more than a month o...