JP Morgan sees no squeeze in GM deliverables

In a research report published last week, JP Morgan said that is foresees no problems with the settlement of General Motors credit default swaps. The report notes that there have been no instances of deliverable obligations being squeezed since Delphi’s auction in 2005. It says that while auto parts maker Lear, Visteon and American Axle all have more credit default swaps outstanding than there are bonds, the imbalance is relatively small in each case. GM, by contrast, has many more bonds outstanding than the $2.3 billion of credit default swap notional.