Why Investors Are Concerned About GE's Liquidity

The video discusses the pervasive nervousness surrounding General Electric's assets, particularly focusing on the significant price drop of GE's floating rate bonds due in 2023. These bonds are linked to GE Capital, raising concerns about the need for additional equity backing. Goldman Sachs highlights the potential tail risk for GE, suggesting that more equity might be required than currently anticipated. The video also examines GE's $111 billion debt, with a substantial portion maturing soon, raising liquidity concerns as the company nears a junk rating, which could increase borrowing costs and impact financing needs.

How much debt does General Electric have on its balance sheet?

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What could be the potential impact of a junk rating on General Electric's financing needs?

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