"Ford's Bond Buying Spurred by Tightening Spreads Amid EV Strategy Shift"

Ford's stock rose 3% following an upbeat earnings report, leading to increased buying of its outstanding bonds and tighter spreads over U.S. Treasurys. The company's fourth-quarter revenue exceeded estimates, and it announced a next-generation EV to compete with Tesla's "Model 2," along with a special dividend and plans for $2 billion in cost cuts. Ford's bonds have seen net buying and performed well, with spreads tightening by 16 to 39 basis points year-to-date, and by 5 to 10 basis points on Wednesday alone. The company's outstanding debt totals about $143 billion, with $92 billion in unsecured debt, and it returned to the investment-grade market last November.