Morning Commentary: Ford convertibles in focus, gain outright

By Abigail W. Adams

Portland, Me., Oct. 28 – Earnings-related volatility continued to spark activity in outstanding issues on Thursday with Ford Motor Co. the name of the day.

Ford’s 0% convertible notes due 2026 were in focus and making large outright gains alongside stock after the Dearborn, Mich.-based car manufacturer announced an earnings beat.

The notes rose more than 6 points outright with stock up about 9% early in the session.

The 0% notes were changing hands at 119 versus an equity price of $17.44.

There was more than $16 million in reported volume.

Ford stock traded as high as $17.58 before coming in to trade at $16.84, an increase of 8.51%.

Ford reported earnings per share of 51 cents versus analyst expectations for earnings of 27 cents per share.

Revenue was $33.21 billion versus analyst expectations of $32.54 billion.

In addition, Ford reinstated its quarterly dividend.

The dividend of 10 cents per quarter is below the amount that was doled out before the dividend was suspended.

However, its reinstatement after more than one year helped propel Ford stock to a new 52-week high.

“It’s a bull day for Ford,” a source said.

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