I noticed this holding in my Fidelity stable income fund as a top 10. I’m assuming if Chrysler goes under, so will this? 23383FBT1 DAIMLERCHRYSLER NORTH AMER HLDG CORP 5.75% 10-AUG-2009
Well it depends on how secured it is, but I’m guessing it is CP. Get on the Bloomberg when you get back to work and try to figure it out. At the very least you could check the CDS spread on it to give you an idea what the market is pricing in. If it is CP, it might get support from the CPFF. Also, there’s the money market facility that could also give you some protection. Would it be possible for you to rollover the 401k into an IRA so you could better diversify your money market holdings?
In order to rollover, I’d have to leave my job…
Since it says “DaimlerChrysler”, which, of course, does not exist any more, it could be that this is still an obligation of Daimler-Benz.
I am better it’s Chrysler as it has a lower credit rating…
sell your holdings and switch to another fund.
250mm deal, issued Aug '06, A3/A-, hasnt traded in ages, last print in Sept @ 99. I saw some similar bonds in late october in mid 90s (7.20s of Sep 09), but have since traded off to low 90s, just shy of 20% yld. Id put these in the same kind of price/yield context today.