MARKET TALK: CDS On BP Tighten Further On PIMCO Buying

16th Jun 2010 19:20

1815 GMT [Dow Jones] The cost of insuring debt issued by BP against default continues to fall, helped by certainty attached to the size of the company's claims escrow account and comments by Pimco's Bill Gross. "At this point, if you can get 10% for one-year paper on BP, we think it's closer to double-A than triple-C" in terms of debt quality, Gross told CNBC. "That's a significant value and we've started to buy some." The 5-yr CDS has fallen to 545 BP year, from over 600 BP earlier and 494 BP Tues, according to Markit, while the cost to insure it for one year is 825 BP. Anadarko Petroleum CDS, another oil-spill related credit, was also cheaper at 675 BP 686 BP.([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 16, 2010 14:20 ET (18:20 GMT)