Another Bond Called
A few days ago, it was Fannie Mae 6.5% bonds being called. No great surprise on that. Now, some 5.5% Ford bonds due next year are being called. What's going on? If you are expecting interest rates to rise dramatically, I don't think that you call existing bonds. This almost looks like a dramatic reduction in interest rates is coming. Or am I missing something? Or is it just that Ford is flush with cash and doesn't need to borrow money? Or are they able to borrow so much so cheaply between now and next year that it makes sense to call the bond?