MARKET TALK: BP CDS Takes Hit After Analyst Remarks

25th Jun 2010 14:15

1314 GMT [Dow Jones] The cost to insure BP and Anadarko debt against default creeped higher this morning after an analyst said the company should sell more stock. BP CDS widened to 570BP from 555BP at Thursday's close, according to CMA Datavision. The upfront payment to insure Anadarko's CDS rose 0.38PP to 5.88%. A 5.88% upfront payment means investors seeking to buy protection against default by Anadarko would pay $588,000 at the outset of the contract, as well as $500,000 in annual payments, for each $10 million insured for five years. BP shares tumbled in London on after a Nomura analyst suggested that BP issue as much as $10 billion in equity to demonstrate its financial health. Shares were down 4.97% in London as of 8:50 a.m. EDT, but had hit 14-year lows earlier in the session. ([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 25, 2010 09:15 ET (13:15 GMT)