Investadvisor

There continues to be speculation regarding government intervention to aid General Motors (GM 3.31, +0.30), Ford (F 1.76, -0.04) and Chrysler. GM told federal officials that a bankruptcy filing would result in a chain reaction that would damage suppliers and dealers, The Wall Street Journal reported.

The risk of running out of cash has taken a toll on shares of GM and Ford, sending the stocks down 89% and 79%, respectively, from their 52-week highs. The automakers' bonds have also been hammered. A Ford bond maturing in 2018 is priced at 26 cents on the dollar to yield 30.9% while a GM bond maturing in 2016 is priced at 22 cents on the dollar to yield 43.5%.