Convert Arb might be the right play now. Hedge funds are not blowing up and there is no Long Term Capital Management-style global financial disaster happening as a result of of the General Motors and Ford downgrades.

But there has been some anxiety about this rumour over the past few weeks and some market volatility has occurred as a result. And to be fair, the fears are not completely unwarranted. But let us separate out the reality from the nightmare and look at where the opportunities will be when the dust settles.