blacktreechaser,

You wrote, Just happened to notice this one. I did not look into it any further than this

8/2032, 7.5's, selling for 101, the bond title reads Ford Company Credit Cont Offer. I did not bother to look up what that means.

So if a bond issued by the financing/credit arm of an auto maker defaults, does the bond holder get to go out and repo a vehicle?

If I recall correctly, Ford Credit is a finance company just like GMAC (now Ally). Generally finance company bonds are unsecured and default often means a total loss for the bond holder.

In general I like Ford Motor Corp and have profited from their debt. However, I would want a premium for Ford Credit vs. Ford Motor Corp as the recovery in the default of the finance company would be poor to non-existent.

I'll leave the rest the DD up to you. Just remember that while dependent, Ford Credit is essentially a separate entity from Ford Motor.

BTW, I wouldn't touch Ally Bank debt ... though they do have CDs of mine, but those are FDIC insured.

- Joel