Tepco Bond Risk Jump on Election Seen as Investment Opportunity
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The jump in Tokyo Electric Power Co. Holdings Inc.’s bond risk after the election victory of a gubernatorial candidate opposed to the restart of the utility’s Kashiwazaki Kariwa nuclear plant is overdone and represents an investment opportunity, according to SMBC Nikko Securities Inc. and BNP Paribas SA.
The cost to insure Tepco debt against nonpayment rose 3.5 basis points to 92 on Monday, the highest since February, according to credit-default swap data from CMA. That followed the victory of Ryuichi Yoneyama, who said on Sunday he can’t approve the restart of the seven-reactor nuclear facility in Niigata prefecture under its current status, according to Jiji Press.