Corporate Bonds: A Ford Deal and More

Sources report that Ford Motor (F) is bringing a 5 year deal. That will be interesting.

Here is some flesh on the bones of the Ford Motor deal:

It will be benchmark size with a 5 year maturity. It will carry an 8 percent coupon and a dollar price of 82. I am sure the folks at Ford are sure there is a dearth of triskaidekaphobiacs in the room because that dollar price and coupon equates to 13 percent yield.

Morgan Stanley (MS) is reopening 5 year and 10 year deals. I hear that the total is $ 1.5 billion but do not have a split. The price talk is 365 and the bonds were 340/330 earlier.

Travelers (TRV) is doing a $ 500 million (it will not grow0 10 year deal. Price talk is T+ 2 3/8.

Comments

[tunaman4u2:]

How are these prices compared to historical averages?

May 28 05:24 PM

[pokernut:]

How do we know Ford won't file for bankruptcy if the economy turns down from here? I am not buying even if a 13% yield is offered.

May 29 08:29 AM

[henarl:]

13% will not look that good when inflation goes to 15%. CDs were paying 18% in the late 70s.

May 29 11:07 AM

[Randy Durig:]

Some Ford Motor Bond Quotes

Jul 10 12:37 PM