Putin Gives BP Investor Haven as TNK-BP Yields Fall
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The worst oil spill in U.S. history is proving a bigger risk to debt investors than Russian Prime Minister Vladimir Putin as BP Plc bonds yield more than those of its Moscow-based affiliate TNK-BP.
BP’s 5.25 percent dollar bonds due 2013 yield 117 basis points, or 1.17 percentage point, more than the 7.25 percent dollar notes due the same year from TNK-BP, according to data compiled by Bloomberg. That’s a turnaround from two months ago when TNK-BP debt yielded as much as 392 basis points more than BP.