Ford CDS rallies as firm posts first annual profit since 2005

Ford Motor Company credit default swaps have actively rallied tighter today after the US auto giant reported its first annual profit since 2005. Interdealer broker Phoenix Partners quoted the credit at 600bp at one stage, from a close yesterday of 635bp, although allowed it has since slipped back to 610bp. The move comes amid a strong rally early on in US high yield credits.

Ford posted an annual net profit for 2009 of $2.27 billion, up from a $15.23 billion loss a year ago. Fourth quarter profit was $868 million, compared with a $5.98 billion loss for the same period last year.