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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (65960)	8/7/1999 5:13:00 PM
From: Robert	Read Replies (1) of 132070

MB and all -- I was hoping to get some insight or analysis on a very strange corporate bond offering of Ford Motor Company that is pending. A bond trader friend of mine told me that Ford Motor Company is issuing bonds ($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? I wonder about the motives for such an offering, as I believe either (1) I am missing something, and such an offering is totally normal (in which case I would love for you to explain to me what the rationale is); or (2) this is cover for some behind-the-scenes disaster or pending disaster. I think maybe (1) is the case, but I worry about (2). Anyhow, thanks MB and all for any help you can give me on this. Regards, Robert

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