Ford Motor Co.’s inventory rose 3% Wednesday after an upbeat earnings report that additionally spurred shopping for of its excellent bonds and helped spreads tighten over U.S. Treasurys.
The automotive firm’s
F,
fourth-quarter income topped consensus estimates, it introduced a next-generation, smaller EV to rival Tesla Inc.’s
TSLA,
upcoming “Model 2,’ and it unveiled a particular dividend together with plans for $2 billion in price cuts this yr.
The yr 2023 was “solid,” however Ford is nowhere close to carried out, Chief Executive Jim Farley mentioned in a name after the outcomes. “We are really positioned well for growth and for profitability, for revenues, as well.”
For analyst feedback: Ford has a ‘Ferrari’? An unsung a part of the enterprise will get its due
The firm’s most energetic bonds noticed internet shopping for early Wednesday, as the next chart from data-solutions supplier BondCliQ Media Services exhibits.
Ford Motor Co. bonds — Net buyer circulate (Intraday).
BondCliQ Media Services
The bonds have carried out effectively within the yr thus far, with spreads tightening wherever from 16 foundation factors to 39 foundation factors. On Wednesday alone, spreads tightened by 5 to 10 foundation factors.
Select bonds issued by Ford Motor Co.: Year-to-date unfold efficiency.
BondCliq Media Services
The bonds have really seen internet shopping for during the last 10 days heading into the earnings report.
Most energetic Ford Motor Co. points with internet buyer circulate (final 10 days).
BondCliQ Media Services
Ford’s excellent debt totals about $143 billion, whereas the unsecured portion — Ford plus Ford Motor Credit — stood at $92 billion as of November, with maturities that stretch out to 2097.
Outstanding Ford Motor Co. debt (USD) by maturity yr.
BondCliQ Media Services
Ford returned to the investment-grade market final November and pulled about $67 billion out of the high-yield market in a single day.
That got here after S&P Global Ratings joined Fitch in upgrading the credit score to funding grade.
See additionally: General Motors wows buyers with quarterly income that’s about $4 billion above consensus
Source web site: www.marketwatch.com
