Yesterday Volkswagen AG announced that it would pay $14.7 billion to get 480,000 emissions cheating diesel vehicles off of US roads:
This is a very heavy settlement.
One thing to remember, however, is that Volkswagen is 20% owned by the German state of Lower Saxony. It also bears a very large imprint on German manufacturing. As such, we decided that Volkswagen debt was to be considered as quasi-sovereign German debt and decided to buy on the heavy sell-off that occurred when the scandal broke in September.