Ford Motor Company just hired a new CFO who finds that they have a five year floating rate borrowing outstanding at LIBOR +10 basis points. The CFO thinks rates will go higher, calls Bank of America, and receives a five year swap quote of 1.75% / 1.85% against LIBOR flat. If the CFO executes on this idea, The CFO will receive fixed for an all-in, net funding cost of 1.85% The CFO will pay fixed for an all-in, net funding cost of 1.95% The CFO will pay fixed for an all-in, net funding cost of 1.75% The CFO will receive fixed for an all-in, net funding cost of 1.75% The CFO will pay fixed for an all-in, net funding cost of 1.85%

Ford Motor Company just hired a new CFO who finds that they have a five year floating rate borrowing outstanding at LIBOR +10 basis points. The CFO thinks rates will go higher, calls Bank of America,...

Ford Motor Company just hired a new CFO who finds that they have a five year floating rate borrowing outstanding at LIBOR +10 basis points. The CFO thinks rates will go higher, calls Bank of America, and receives a five year swap quote of 1.75% / 1.85% against LIBOR flat. If the CFO executes on this idea,

		The CFO will receive fixed for an all-in, net funding cost of 1.85%
		The CFO will pay fixed for an all-in, net funding cost of 1.95%
		The CFO will pay fixed for an all-in, net funding cost of 1.75%
		The CFO will receive fixed for an all-in, net funding cost of 1.75%
		The CFO will pay fixed for an all-in, net funding cost of 1.85%

Jun 09, 2022

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Ford Motor Company just hired a new CFO who finds that they have a five year floating rate borrowing outstanding at LIBOR +10 basis points. The CFO thinks rates will go higher, calls Bank of America,...

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