Ford's Fall Could Clog Junk Market

April 2005
Investment Dealers' Digest;4/18/2005, Vol. 71 Issue 15, p7
Trade Publication
The article reports on the implication of the downgrade of Ford Motor Co. debt to high-yield status. The downgrade could hove on untidy effect on the corporate debt markets--dumping billions of dollars worth of issues into the junk secondary market, upending market indexes and causing buyers to scramble to change their current positions. Ford will slip into junk status if its debt gets slashed three more notches by the rating agencies. Ford is one of the bond market's biggest issuers, even though it has primarily used securitizations in the past few years.


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