GE Debt Issue Signals Credit Market Thaw

GE issued an additional $10 billion of shorter-term bonds which are backed by the FDIC. Issuers who want the government to guarantee their debt must pay a fee of 0.75% or the amount being raised. Wilkerson says GE decided to pay this fee because there was clearly higher demand at a better price for government-backed bonds.

Though word of the GE deal was in the market by mid-Tuesday, it is hard to discern any effect on the deal may have had on GE's stock, which rose slightly with the overall market on Tuesday.