|4. General Electric deflates|
Data:FactSet; Chart: Lazaro Gamio/Axios
General Electric would love to have a share price down 35% from its highs. The stock closed Friday at just $8.02 per share, which is down 75% from the July high of $33, down 80% from the pre-crisis high of $42, and down 85% from the all-time high of $60, set in August 2000. And those numbers if anything understate the degree to which GE has been diminished since its heyday.
No one's shedding any tears for speculators like Nelson Peltz, who has lost some $700 million on his GE bet. But GE bondholders are a different matter. GE has a total debt of $115 billion, including $100 billion of long-term bonds. That's more than its market capitalization.
To see just how bad things are looking for GE, consider its perpetual preferred securities. If GE doesn't buy back that paper at par in January 2021, it's going to have to pay a punitive 333 basis points over Libor in interest. And it's looking very much as though GE won't have the wherewithal to buy back the stock.
The bottom line: GE Capital needs at least $20 billion in new funds, and perhaps significantly more, according to a research note put out by Goldman Sachs this week. Goldman also raised questions about GE's insurance and power operations.
Why it matters: GE is far from insolvent, but it's definitely in trouble. If its $100 billion of debt got downgraded to junk status, the effect on the credit markets could be seismic.
since 1960 most of the world's population mapping sdg development - eg asians as over 60% of humans have traded round a japanese translation of global system- compounding solutions americans like deming and borlaug open sourced -more than any other single system dynamic friends at journalistsforhumanity have been able to map- brookings update 2020- 5/15 how taipei, seoul, hk, saved their peoples, and hanoi
|SDG education revolution||coming - books.. diary 2020|
human & tech future of education- 1984's book 2025 report- 1986's survey in Economist
|email@example.com, normanmacrae.net quarters 5 and 6 of EconomistDiary 2018-1843 - journalists valuing mediation of goal 1 end poverty , A global databank for brandchartering the interconnecting aims of CLO, CBO and CEO in organising learning, branding and strategy - "I'd like to ask : Isn't it time that branders, strategists, and learning systems people believed and acted on their marketing promise as much as they want end-consumers to trust it? I am editing a millennial issue of a journal where we are urgently inviting world leading influencers of strategy, brand or learning to write 6 pages on future organisational frameworks in such simple language that every reader connects to the big idea whatever their home area of expertise"||.||.||.||.||.||.||.||.||.||.|