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Ford July Sales


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Thanks, so in a nutshell it's just a more complicated process? Is that increase in cost something that both lenders are still absorbing?

 

Because at the end of the day, selling a portion of Ford Credit is not going to rake in a ton of money. Will it?

By now, hopefully, both GMAC and Ford Credit have a handle on the cost of securitizing debt.

 

However, given the rate at which the Fed has increased the discount rate (inverting the treasury yield curve), Ford and GMAC have seen rising interest rate expenses, as have most lenders over the last year. It's just that declining credit ratings furnish a readymade explanation for those that don't want to look further.

 

I don't know what the potential price for a 51% stake in Ford Credit would be. Ford Credit is better run than GMAC, but less diversified, and more dependent on the fortunes of Ford's auto operations.

Edited by RichardJensen
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