GM, Ford Offer Alternative Names for 'Junk Bonds'

[dwasson]

(2005-05-05) -- Executives at Ford and General Motors today challenged a move by Standard & Poor's to downgrade the big automakers' debt to 'junk' status.

In a teleconference with institutional investors, they made a vigorous pitch for buying what they called "quality-checked" or "certified pre-owned" bonds.

"'Junk bond' has such a negative sound," said an unnamed GM spokesman. "A man can't come home to his wife and say 'Honey, I bought some junk bonds today.' We need to give our non-investment-grade debt a name that conveys prestige, style, success and hope for a better tomorrow."

The executives suggested that investors think of GM and Ford debt as 'creampuff bonds' or 'genuine classic bonds'.

Both automakers' stock prices dropped sharply today with GM selling at $30.86/share and Ford at $9.70/share, or best offer.

[Mike Poore]

Both automakers' stock prices dropped sharply today with GM selling at $30.86/share and Ford at $9.70/share, or best offer.Me and my buddy Joe Walsh are not taking this news well.
:eek: Junque bonds?

Perhaps we should stage a benefit concert. :sing:

My new 500 won't go 45
It's in the shop, now, so it I don't drive
I'd buy a Chevy, but they're in the tank too
So I'm thinking rice is the only thing left to do
BUM, BUM,BUM,BUM ....they say I'm crazy ....<BUM<BUM<BUM, p ....< crazy I?m say they>

[rocknrod]

Great time to buy Ford stock.

[metroplex]

Ever look at the historical prices for Ford stock?

I think GM and Ford executives should figure out ideas on how to get out of the S&P junk bond status rather than figure out different names for the junk bond status.

[Joe Walsh]

Great time to buy Ford stock.


I was actually thinking about this, as I had bought Ford stock several years ago at @ $7.60/share then watched it climb back up to @ $17.50/share....
now its back down to @ $9.20/share... :bigcry:
I knew that Ford stock wouldn't stay at $7/share,
my only problems were that I didn't sell it when it was $17/share and I already had lots of Ford stock that I bought at @$22/share!! :eek:

I don't think that I will do this again because Ford lives off of SUV & Truck sales, both of which have a troubled future....
sky high GAS $$$$ and increased competition from full size import trucks. :alone: :(

I'll let Mike step up to the plate this time....

[Joe Walsh]

(2005-05-05) -- Executives at Ford and General Motors today challenged a move by Standard & Poor's to downgrade the big automakers' debt to 'junk' status.

In a teleconference with institutional investors, they made a vigorous pitch for buying what they called "quality-checked" or "certified pre-owned" bonds.


The executives suggested that investors think of GM and Ford debt as 'creampuff bonds' or 'genuine classic bonds'.


:lol: :lol:

It would be even funnier if I didn't own any Ford stock.