More junk bonds thrown on the market. It may be a major car dealer but I don't think I would want to dump 2 billion dollars for their bonds. All the bond issued are just way too risky. What do you think about them continuing to issue debt like no tomorrow?
https://www.cnbc.com/2021/03/16/ford-announces-2-billion-convertible-notes-offering-.html
Posted Using LeoFinance Beta
$10.5 trillion at the end of last quarter.
200 moved to junk status in 2020 (50 is the norm).
What could be wrong with this situation?
How do I get inline for this bond offering? I will get up early to buy. lol
Posted Using LeoFinance Beta
Lol you can feel free to jump into the dumpster fire. I won't because the economy is horrible and they haven't fully adapted to the digital age.
Posted Using LeoFinance Beta
I dont have a lot of Ford at any level. Their golden goose is the F-150 and that sinks when construction pulls back. A housing collapse kills them.
Posted Using LeoFinance Beta
Lol I didn't follow Ford that much so I didn't realize the housing collapse would hurt them so much. I think General Motors isn't looking that bad given their balance sheets and ever since I sold out of my position, I haven't found a good enough pullback to re-enter.
Posted Using LeoFinance Beta
Ford is heavily dependent upon the construction industry. They sell more F-150s than Tesla does cars (by about double the 2020 numbers).
That is a lot of $70K truck they churn out.
It will be interesting to see who they weather the next real estate downturn.
Their balance sheet isnt strong and they are lagging in autonomous. I dont even think they are a really strong player in electric. Sure they brought out the Mustang but they have few cars in their lineup anymore.
Posted Using LeoFinance Beta