Ford Motor Co. is relying on a Federal Reserve program to market securities backed by auto-dealer payments, showing that borrowers may still need U.S. help to issue asset-backed securities as debt markets heal.
Ford’s finance arm plans to issue $500 million of the so-called floorplan bonds, linked to loans that finance cars on dealer lots. Offering that kind of debt without U.S. aid may be a “trickier proposition” than selling traditional securities backed by consumer payments, according to Barclays Capital.
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