Re: GMAC Smart Notes - What do you think
These are indeed bonds like any others. In this case you are lending to GMAC, which entails substantial credit risk. However, you do usually get paid pretty reasonable interest for the level of risk you take on with any gigantic borrower simply because it is often difficult for them to find sources of cash without upping their rates. Just don't buy too much from one issuer, and you'd be OK.
"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."
- English Bob