Bonds
Edison International’s Debt Extend Drop as Fire Lawsuit Hits
- Holding company debt is performing worse than utility notes
- Lawsuit accused equipment owned by uliity for starting fire
A firefighter works on top of a truck during the Palisades Fire near the Sullivan Canyon area of Los Angeles, on Jan. 11.
Photographer: Benjamin Fanjoy/BloombergThis article is for subscribers only.
Edison International’s bonds weakened on Monday relative to Treasuries, extending a week of losses, after its utility was hit with a lawsuit blaming the energy provider’s equipment for igniting one of the wildfires burning around Los Angeles.
Risk premiums on Edison International’s debt broadly widened, with bonds at the holding company performing worse than secured debt at the utility. It’s 4.95% senior unsecured bonds maturing in April widened 158 basis points to 236 basis points as of 03:12 p.m. in New York, according to Trace. It’s 5.75% bonds due in 2027 widened 38 basis points to 160 basis points.