Investors Buy GM, Sell Ford

Investors in General Motors Corp. and Ford Motor Co. paper were said to be hedging against a downturn in Ford Motor bonds by selling Ford notes and buying GM paper.

  • 30 Jun 2006
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Investors in General Motors Corp. and Ford Motor Co. paper were said to be hedging against a downturn in Ford Motor bonds by selling Ford notes and buying GM paper. A dealer said investors see more upside for GM bonds compared to Ford notes. He said GM's agreement to buy out 35,000 of its workers, who have agreed to accept early retirement packages, and the pressure on the company to agree on a deal with the United Auto Workers, has caused investors to view the company's debt positively. Investors view Ford paper as having less upside.

Last week, Standard & Poor's lowered Ford Motor Co.'s corporate credit rating to B+ from BB- reflecting the agency's view that 2006 will be a more difficult year for Ford than previously anticipated. The downgrade had little impact on its bonds, however. Ford Motor's 7.45% '31 bonds were off a quarter of a point to 70, while GM's '33 bonds increased a quarter of a point to 75.

"We remain committed to a turnaround plan that we announced in January, which addresses the challenges facing our North American operations. We have a goal to return the auto operations to profitability no later than 2008," said a Ford spokeswoman. She declined to comment on investors selling the company's debt.

  • 30 Jun 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 12,508 23 18.18
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.72
3 Lloyds Bank 5,761 18 8.38
4 Citi 5,606 15 8.15
5 JP Morgan 5,007 7 7.28

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 95,041.28 268 11.13%
2 Bank of America Merrill Lynch 79,274.93 221 9.29%
3 Wells Fargo Securities 69,765.48 197 8.17%
4 JPMorgan 69,438.13 198 8.13%
5 Credit Suisse 57,820.17 147 6.77%