GMAC Smart Notes - What do you think

Hello KB. They look like bonds to me also. And, risk-wise
I see them as practically zero. I would not be afraid to commit a huge chunk of my meager pile.

John Galt
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.
I purchased GM and GE internotes for my Mother, who is in a nursing home. Look over the survivor option carefully, but the advantage is that when Mom dies the survivor(s) can choose between keeping the note or redeaming for face value and acumulated interest. Redemption will result in a capital gain for the survivors, I think, but Mom receives a nice return while living. Details can be found on the Fidelity website.
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