Ford Credit Rating Upgrade Shrinks Junk Bond Market by $47 Billion

Ford's credit rating upgrade to investment grade pulled $46.8 billion of debt out of junk bond indexes last month, shrinking a global benchmark.

The upgrade signals a shift in corporate priorities as companies shore up finances amid potential recession.

Credit upgrades this year have decreased fallen angels to $142 billion from $344 billion in 2020.

Ford's upgrade means the global junk bond benchmark shrank 4% in October, the biggest monthly decline since 2005.

Some expect more upgrades as credit fundamentals improve despite economic slowdown, unlike in previous cycles.