No. of Recommendations: 2
Due to today’s upgrade by Moody’s, it’s no surprise that Ford’s debt has now gotten very expensive. Besides being priced at steep premiums to par (and, hence, unattractive to most bond investors), almost none of it offers a real-rate of return, even when adjusted for an inflation-rate as modest as 5%.

The YTM calcs are my own based on price-data from Zions after market close. In other words, the prices are stale, and the method used to produce the YTMs is proprietary (but easily enough reverse-engineered).
-----------------------------------------------

Cpn Due Price Adj_YTM

7.800 06/01/12 100.116 -47.9%
7.500 08/01/12 101.300 -8.7%
7.000 08/15/12 101.341 -7.5%
7.000 10/01/13 107.800 -4.2%
8.000 06/01/14 112.490 -3.5%
8.700 10/01/14 114.850 -2.9%
3.875 01/15/15 105.000 -3.2%
7.000 04/15/15 113.060 -2.8%
12.000 05/15/15 126.750 -2.4%
2.750 05/15/15 101.535 -2.9%
5.625 09/15/15 110.521 -2.8%
5.000 09/20/16 101.000 -0.4%
4.250 11/20/16 101.350 -1.2%
8.000 12/15/16 127.500 -3.2%
4.250 02/03/17 107.694 -2.5%
6.625 08/15/17 116.724 -1.9%
5.000 05/15/18 109.250 -1.7%
6.500 08/01/18 117.900 -1.7%
8.125 01/15/20 131.546 -1.5%
9.375 03/01/20 126.700 0.1%
5.750 02/01/21 115.000 -1.3%
5.250 06/20/21 101.750 0.0%
5.875 08/02/21 115.000 -1.1%
9.215 09/15/21 126.000 0.5%
5.000 11/20/21 101.350 -0.2%
8.875 01/15/22 129.341 0.0%
7.125 11/15/25 120.648 -0.1%
7.500 08/01/26 125.171 -0.1%
6.625 10/01/28 117.996 -0.1%
6.375 02/01/29 108.250 0.5%
9.300 03/01/30 135.550 0.8%
7.450 07/16/31 129.951 -0.1%
8.900 01/15/32 133.183 0.7%
7.750 06/15/43 124.509 0.4%
7.400 11/01/46 120.279 0.3%
9.980 02/15/47 147.710 0.6%

http://finance.yahoo.com/news/ford-gets-second-investment-gr...
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What a hoot! Checking my schedule of holdings reveals that I own their 9-3/8's of '20. But I got in at 85.095, not the present price of 126.700. I also own their 7.75's of '43 at an entry price of 62.045 (compared to the present price of 124.509), and their 7.4's of '46 at an entry price of 75.548 (compared to the present price of 120.279).

Am I good, or am I good?

BZZRP! Wrong question.

The reason I'm in those bonds, at those prices, is due to one simple fact. I read Ben Graham's, The Intelligent Investor, and I took its lessons seriously. Bond-investing is nothing if not a value gig in which you're trying to buy assets at a sufficient discount to intrinsic-value to create a margin of safety. That's it. That's the gig. You're trying to buy value cheaply, and your only concern is total return. But if you've done your job well, you're doing two things. One, you're making a fatter current-yield than the average fixed-income investor ever will, and you're making decent-enough cap-gains that you'll beat those of the average stock-investor (whose miserable performance is well-documented by the Dalbar studies).

For sure, bonds can be traded, and there's serious money to be gained. But for a low-effort, decent-returns gig, classic Ben Graham-style value-investing is the way to go. (IMHO, 'natch)
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