US junk bonds experienced their worst one-day loss in six months, with spreads widening and yields rising amid escalating trade tensions between the US and China, sparked by President Trump's tariff threats and diplomatic tensions.
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.
The absences of key players like Drake Maye and Caleb Williams have had a significant impact on the betting lines for their respective college football bowl games. North Carolina is now a 6.5-point underdog against West Virginia, while USC is a 7.5-point underdog against Louisville. The Cotton Bowl has seen the biggest spread shift, with Missouri going from a 6.5-point underdog to a 2.5-point favorite against Ohio State. Despite these changes, Alabama remains a popular bet as a 1.5-point underdog against Michigan in the Rose Bowl College Football Playoff semifinal.
The Kansas City Chiefs are 5-1 and 5.5-point favorites against the Los Angeles Chargers in Week 7, while the Philadelphia Eagles are 5-1 but only three-point favorites against the Miami Dolphins. The model's top picks include the Baltimore Ravens (-3) covering against the Detroit Lions and the Los Angeles Rams (-3) covering against the Pittsburgh Steelers. The model has a strong track record and has returned over $7,000 for $100 players on top-rated NFL picks.