Ford and GM debt continues to trade at a discount to par. I know you have heard all the horror stories surrounding both companies, but in the midst of disasters, bargains are born. Below, I have listed a few income idea's:
Ford Motor Credit Co., 7 3/8% Notes due 10/15/2031- FCZ
Ford Motor Credit Co., 7.60% Notes due 3/01/2032- FCJ
General Motors Acceptance Corp., 7.25% Notes due 2/7/2033-GKM
General Motors Acceptance Corp., 7.35% Notes due 8/8/2032-GJM
General Motors Acceptance Corp., 7.375% Notes due 12/16/2044-GOM
General Motors Corp., 7.25% QUIBS Quarterly Interest Bonds due 4/15/2041-GMW
General Motors Corp., 7.50% Senior Notes due 7/01/2044-GMS
General Motors, 5.25% Series B Convertible Senior Debentures due 3/5/2032-GBM
General Motors, 6.25% Series C Convertible Senior Debentures due 7/15/2033-GPM
As always you need to assess your own risk tolerance and individual asset allocation before investing.
We have not received any word yet on Secretary John Snow's reprimand of the Chinese. Nothing has been reported in the mainstream press, so we don't know if he actually got tough or turned into "Percy Milktoast". Stay turned. We will have our ear low to the ground.
One thing we do know is the G-8 forgave more than $40 billion of debt owed by the poorest nations. Unbelievably, the G8 countries said they would provide additional funds to compensate the World Bank and African Development Bank for the loss. The U.S. will provide $1.3 billion to $1.75 billion of your hard earned money to help the cause.
On Friday, The markets opened higher but, and then sold off as Intel (26.98,INTC) disappointed investors with a good revenue report. The sell off was a classic buy on the rumor, sell the news senario. Intel will probably trade up after a brief pause in the market.
Today's trading was more of the same. After an impressive mid-day rally, the markets sold off to close up almost 10 points. If the market continues this type of price action, we could get one more sell off before the market begins to celebrate Greenspan's anticipted interest rate pause.
Disclaimer: This statement is not a solicitation to buy or sell any security. Carefully assess your own risk tolerance and goals before investing.
Comments (1)
Love your commentary, but you keep repeating a spelling error:
"Carefully ACCESS your own risk tolerance and goals before investing."
I think you mean "assess".
Thanks,
Don
Posted by Don | June 15, 2005 12:07 PM
Posted on June 15, 2005 12:07