Ford credit rating upgrade to boost demand for US investment-grade bonds -analysts

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Ford credit rating upgrade to boost demand for US investment-grade bonds -analysts

© Reuters. FILE PHOTO: Ford logo is pictured at the 2019 Frankfurt Motor Show in Frankfurt, Germany September 10, 2019. REUTERS/Wolfgang Rattay) Co's investment-grade credit rating this week after almost four years as a"junk"-rated company is set to boost demand for high-quality U.S. corporate bonds, analysts said.

" $41 billion currently in the high-yield index, upgrade is bound to create a massive positive technical tailwind in its wake," Bank of America analysts said on Friday.Investment-grade funds have seen net inflows of $1.7 billion over the past week, after outflows of $5.7 billion over the previous two weeks, according to JPMorgan research using data from EPFR.

Just days after regaining its investment-grade rating, Ford Motor Credit raised $2.75 billion through the issue of 5- and 10-year bonds on Thursday.

 

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