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The economy and markets got whacked from the covid mania and you feel the markets are settling down after a major freefall. You see the
- The economy and markets got whacked from the covid mania and you feel the markets are settling down after a major freefall. You see the bond of Ford motor company that went from $1,100 down to $680 and now you can buy it for $780. Why did it bounce and why should you buy it?
- Ford is a good company and has little credit risk
- It bounced as credit risk shrank and the hope is that spreads keep shrinking to see it at a higher level yet.
- It bounced as credit risk shrank and the hope is that spreads keep expanding to see it at a higher level yet.
- It bounced as credit spreads widened and the hope is that spreads keep shrinking to see it at a higher level yet.
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