But Pimco, the world's largest bond fund, predicts the fall will be more like 5%-105%-10%
It is the largest bond issue ever proposed by the agency.
Bill Gross, the Pimco portfolio manager who runs the largest bond mutual fund, certainly thinks so.
Pimco, the largest bond investor, is a major holder of its debt.
Ambac, one of the world's largest bond insurers, has suffered after guaranteeing billions of risky repackaged subprime mortgage bonds.
In November, voters will be asked to decide the largest bond act in state history, to pay for transportation projects.
On Wednesday, a leading rating agency cut its credit rating on Financial Guaranty, one of the nation's largest bond insurers.
William H. Gross, who manages the world's largest bond fund for Pimco, said G.E. was too reliant on commercial paper.
"They don't have six weeks," said Mohamed A. El-Erian, chief executive of Pimco, the world's largest bond manager.
The remarks came from William Gross of the Pacific Investment Management Company, which manages the Pimco Total Return fund, the country's largest bond fund.
BlackRock Inc. and Federated Investors Inc., two of the largest bond fund managers, said yesterday that they had received subpoenas from Mr. Spitzer.
