C2 Market Linked Products Series 2023/1 – Ford Motor Co
You can now invest in an Australian dollar, fixed coupon, credit linked security over Ford Motor Company targeting a 6.00-6.50% per annum return.
Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
Ford Motor Company is a leading automaker established in 1903, known for its production of popular models such as the Model T, Mustang, and F-Series. It is a multinational company with a presence in over 190 markets and offers a wide range of vehicles, including cars, trucks, SUVs, and commercial vehicles. In recent years, Ford has made a strategic shift towards electrification and autonomous driving technology. Despite industry challenges, it remains a major player in the global market with a strong brand reputation.
Ford is a listed global household name (NY Stock Exchange: F) with a market capitalisation of USD 54B.
Key Information
- Issuer: C2 Specialist Investments Pty Ltd
- Target Rate: 6.25% per annum paid every 3 months
- 3.75-year note (Reference asset scheduled maturity date 20 December 2026, subject to any credit events).
- Issue Price: $100
- ABE Code: C2FF062526
- Minimum Investment: A$10,000
- Currency: The note is denominated in AUD. All Coupons and any Final Value is delivered in Australian dollars.
Reference Entity: Ford Motor Co
Reference Asset:
- Ford Motor Company USD generic Credit Default Swap (CDS) contract
- Bloomberg Name: FCO CDS USD SR 4Y D14
- Standard Reference Obligation: Ford Motor 4.346% bond maturing 8 December 2026, USD/US345370CR99
- Bloomberg Name: F 4.346 12/08/26
- Bloomberg ISIN: US345370CR99
- Debt Type: Senior
Risks
The risks listed below are some of the risks associated with the activities of an investment in Yield Enhanced Securities. For a comprehensive description of the risks, please refer to the Key Risks section of the Term Sheet PDS.
Credit Risk: Defaults on the underlying security may result in a loss of principal invested and/or interest due under those bonds and the underlying CDS contracts.
This risk is mitigated by:
- the size and global reach of the underlying security;
- the use of Tier One International banking partner
Bond and CDS Market Risk: A material decline in the value of Ford brand in relevant market segments will erode the value of the Notes and the underlying CDS contracts.
This risk is mitigated by:
- the factors referred to under ‘Credit Risk’ above;
Liquidity risk. You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy-Back requests are determined at the Issuer’s discretion.
This risk is mitigated by:
- the Australian Bond Exchange will facilitate the secondary market to enhance liquidity