Ford sells bonds to Canadian retirees, who demand lower returns
By Detroit News staff reports, Bloomberg News and wire services
TORONTO -- Ford Motor Co. is turning to Canada's retirees and small investors as a new source of funding after more than $6 billion of losses in the past two years left its credit rating two steps from dropping below investment grade.
Ford Credit Canada, the Canadian financing unit of the world's No. 2 automaker, last week raised $90 million, or $136 million Canadian, in the first of a new program of bond sales targeted at individuals. It may sell a total of $3 billion Canadian in the next two years, according to the company's prospectus.
Selling bonds to small investors is attractive for Ford because they're willing to accept a lower return.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....