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  • March 1993 (Revised July 2008)
  • Case
  • HBS Case Collection

Liability Management at General Motors

By: Peter Tufano
  • Format:Print
  • | Language:Japanese
  • | Pages:18
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Abstract

An analyst at General Motors charged with managing the structure of the automaker's debt must decide whether and how to modify the interest rate exposure of the firm's most recent debt offering. The analyst must take into consideration GM's liability management policy guidelines, the firm's existing interest rate exposure, his expectations of interest rates, and the wide range of interest rate products available. He must decide whether to leave the fixed-rate instrument unchanged or to enter into a swap, cap, interest rate option, or swap option transaction.

Keywords

Borrowing and Debt; Capital Structure; Financial Management; Interest Rates; Risk Management; Auto Industry; North America

Citation

Tufano, Peter. "Liability Management at General Motors." Harvard Business School Case 293-123, March 1993. (Revised July 2008.)

About The Author

Peter Tufano

Finance
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