BP Plugging Well Caps Confidence Crisis in Debt: Credit Markets
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The bond market’s crisis of confidence in companies tied to the biggest accidental offshore oil spill on record is ending as BP Plc sealed off the source of the leak in the Gulf of Mexico.
One-year credit-default swaps on bonds from BP and its partner in the well, Anadarko Petroleum Corp., cost less than five-year protection, reversing an inversion that began in June amid a rush to hedge against the risk of the companies’ sudden failure. London-based BP’s $3 billion of 5.25 percent bonds due in 2013 have regained more than 70 percent of the value they lost after the spill began.