Saturday, April 23, 2005
Some softening of Ford's pricing of its preferreds was apparent in March, perhaps because some others are seeing that what's bad for GM will also be bad for Ford. Our good friends at Rapid Ratings also have had Ford as below investment grade for years, but that should come as no surprise. It is, in fact, surprising how many S&P 500 companies fail the investment grade test when purely objective measures are used. Examples are AIG, Boeing and Pfizer, just to name three Dow stocks.
Oh, and a kinda-sorta correction - I'd previously claimed that GM held nearly $300B in bond debt. According to Bloomberg, maybe it's only $114.5B, with about $16.5B coming due this year. Whew - I feel much better now.