NEW YORK -- Deutsche Bank Securities on Monday raised its recommendation on General Motors' debt to a "buy" from a "hold," saying it believes a recent price decline is overdone, though it does not expect a dramatic recovery by the automaker.
"While this is by no means a ringing endorsement of this credit, we believe GM debt is oversold," Deutsche Bank said in a research note.
GM's benchmark long bonds last week fell to a record low of 64.9 cents on the dollar on concerns that a possible strike at its key supplier Delphi Corp. would cripple the automaker, depleting its cash reserves. GM's long bonds, due in 2033 with a coupon of 8.375 percent, have since recovered to 70 cents on the dollar, according to MarketAxess.
GM on Monday announced a major restructuring plan to close a dozen facilities and cut 30,000 jobs as it struggles to bring costs in line with foreign competitors.