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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Henry Volquardsen who wrote (2023)8/7/1999 5:05:00 PM
From: Robert  Read Replies (1) of 3536
 
Henry et al. --

A bond trader friend of mine happened to mention to me that Ford Motor Company is issuing a bond ($100 mil) on which they are going to pay 15 basis points extra to the holders if they accept Merrill Lynch as the named originator; Ford is to guarantee the bond.

My pal said that he has never seen this before and can't figure out what the heck Ford is doing. I guess trying to move something off of their balance sheet, so could this be derivatives related? Perhaps something blew up or is about to?

As you are THE authority on the fixed income markets, I just know that you will be able to clear this up for me and educate me about the offering! <g>

Anyhow, I look forward to getting any input from you and the other posters on the thread. TIA to all for your input on this matter.

Regards,

Robert
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