GE's tumbling bonds are highlighting a bigger problem at the fallen giant (GE)

pulse

November 14, 2018 7:47 PM

Formerly one of the US's major companies, GE's fall from grace has been stark. Investor confidence is shaken and the company's bonds are taking a hit.

GE, once the world's most valuable company, is now struggling to survive.
The company's bonds are falling even after GE said it would sell its stake in oil field company Baker Hughes.
The company's leverage is high, causing a "sense of urgency."

Once the world's most valuable company, GE's fall from grace has been stark. Investor confidence has been shaken and the company's bonds are taking a hit.

Trading on November 13 saw the company's 4.4% 2035 bond fall 2.5% on the back of news that the company was selling a portion of its stake in Baker Hughes, an oil field servicing company. This decline came even as GE shares rose following the announcement.

This contrast with the company's shares is important as the company's future borrowing cost is linked to its bond yield. GE's bond yields have been on the up of late with an issuance by

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