GM's survival is made difficult by CDSs

• GM debt holders could make billions off credit default swaps: The large number of credit default swaps written on General Motors debt is making it increasingly unlikely that GM's debt holders will support a restructuring for the troubled automaker. Owners of the debt stand to make billions of dollars on the swaps in the event of a default but would put those proceeds at risk by trading their debt for an equity stake in a restructured GM. Financial Times (11 May.)