Financial Times FT.com

Downgrade ‘non-event’ for the markets

By Gillian Tett, Richard Beales and Stephen Schurr in New York

Published: May 5 2005 23:06 | Last updated: May 5 2005 23:06

Traders like to say that the shock that hurts is never the one you expect. In that respect, Thursday's downgrades of General Motors and Ford Motor should barely cause a market blip.

Nevertheless, investors face two critical questions. First, have they protected themselves from all the ramifications of Thursday's move? And, second, do the downgrades presage a bigger turning point in the credit cycle?

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