Ford Motor Co.'s credit default swaps tightened 15-20 basis points to 580-590 after Bill Ford stepped down as ceo last week. The company's '31 bonds increased a point to 80-81. A trader said the departure was viewed positively by the market, but the bonds did not move much because the new CEO, Alan Mulally, still has a lot of work to do in order to return the company to profitability.
Ford hired Mulally from The Boeing Company, where he most recently served as executive v.p. Bill Ford will continue as executive chairman. In an email to Ford employees, the former ceo said the company's turnaround effort requires the additional skills of an executive who has led a major manufacturing enterprise through similar challenges facing the auto maker. A call to a Ford spokesman was not returned by press time.