Prior to Q4 2018 I had only written about General Electric’s (GE) industrial businesses, purposely avoiding GE Capital (“GECC”). The company’s credit ratings have since come under scrutiny. On General Electric: Was That A Run On The Bank? I questioned whether GECC’s borrowings exceeded its customer loans:

GE Capital had short-term borrowings, non-recourse loans, and long-term borrowings totaling $70 billion. I assumed $16 billion was used to fund the financing receivables and $54 billion for some other purpose. I find it hard to believe that the lion’s share of that $54 billion debt load was not GE debt simply parked at the financing arm.

Just over a week later Barron’s provided an update on GE’s debt load and the so-called “matched book” at GECC:

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