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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (5727)	12/10/2002 5:33:45 PM
From: Ahda	Respond to of 24758

In regards to Ford this is fact. Reuters Ford Found a New Form of Financing Sunday December 8, 10:03 am ET By Dan Wilchins NEW YORK (Reuters) - Ford Motor Co. (NYSE:F - News) has found a new form of financing to help ease its rising borrowing costs, but it hasn't found a magic bullet, analysts said. Ford, faced with rising pension costs and, a sagging share price and declining credit ratings said last month that its Ford Motor Credit Co. unit had opened up a new avenue for financing itself by selling $3 billion of auto loans to Bear Stearns & Co. Inc.(NYSE:BSC - News). Auto companies usually don't sell their car loans to investment banks. Instead they typically package loans into bonds themselves and sell them to investors. Bear Stearns on Wednesday sold about $2.9 billion of bonds, called asset-backed securities, secured in part by the Ford loans. While more deals like this one are likely to follow, the future of these types of deals is likely to be limited, with big U.S. automakers like Ford and General Motors Corp. (NYSE:GM - News), who need access to financing, seen as the most likely beneficiaries. > What I am implying is that a temporary propping of the market can help to avoid a bigger financial catastrophe by distributing the problem amongst a larger group. I have absolutely no proof that this is the case. I highly doubt if Bear Sterns would set them selves up for a break down. You can't prop anything up on a temporary basis without increasing the chance of a total collapse. if you are implying that as in corporations smaller you can shift debt into portions of companies and spin them off it is possible. I dont think anyone would even attempt to spin off or distribute debt onto the houses. Part of the pension problem is there has been a reduction in US employees that contribute to the plan. There might of been an increase in other areas on the globe employees however those increases mean you have a wage and currency difference that are decreasing the amount of funds the Pension Fund receives yet the fund is paying out in US dollars. >Do you have an opinion as to whether Ford and IBM pension fund managers were net buyers or net sellers in the past month? Jori i don't know what the Ford Pension plan holds so I hesitate to comment on what they have done. Yes i think the FED has stepped in when they were concerned about adequate dollar flow. I do think however that one must realize UAL is bankrupt.