Crashing Angel: Moody's Downgrades Ford, And Its $84 Billion In Debt, To Junk | WHAT REALLY HAPPENED

Crashing Angel: Moody's Downgrades Ford, And Its $84 Billion In Debt, To Junk

With pundits warning for years about the threat of "fallen angels", or low-rated investment grade names downgraded to junk, the market first paid attention to, then learned to ignore the warnings as credit continued to tighten, helped in no small part by trillions in negative yielding sovereign debt - despite the ongoing threat of deteriorating fundamentals.

That however may suddenly change as the universe of (split) junk bond names is about to become bigger by almost $100 billion when moments ago Moody's downgraded Ford's senior debt rating from investment grade Baa3 to junk Ba1 (stable outlook), in the biggest shot across the fallen angel bow in years.

According to Bloomberg, no less than $84 billion in debt is affected, making Ford the single biggest fallen angel in the US bond market.

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