With the FDIC-backed TLGP program set to expire on October 31 (with a 6 month safety net optionality, whatever that means), GMAC did all it could to jump on the last train leaving the cheap taxpayer funded capital station. The government subsidized provider of car loans for cars nobody wants priced $2.9 billion of 3 year notes. Luckily for the UAW and for the autobailout fans, the issue came in to price at a measly T-31.6 bps: a yield of 1.753% which would be unheard of had GMAC actually tried to tap the private markets. Oh yeah, and it is AAA rated. Thank you Sheila Bair for putting another $2.9 billion of taxpayer money in harms way and with a virtually 0% probability of recovery.
[PRICED:] USD2.9bn 1.75% 10/30/12. At 99.991, yld 1.753%. T+31.6 (MS-10). Settle 10/30 (T+2).
[GMAC Inc] Aaa/AAA/AAA in the market with USD2.9bn (will not grow) SEC registered global 3-year fixed rate TLGP trade via joint books Citi/DB/MS/RBS. Issued under TLGP, gtd by FDIC with full faith and credit of the United States. UOP: GCP.
Oh, and let's not forget that GMAC is an (undercaptialized) bank holding company. So next time you have a cool million lying around, why not deposit it with the best UAW-endorsed money manager around. What - no deposit branches... Hm, that can't be. Someone please get Sheila Bair on the line stat.