MARKET TALK: Market Prices In BP's Short-Term Default Risk

25th Jun 2010 17:08

1557 GMT [Dow Jones] The credit default swaps market is pricing in a greater risk of BP defaulting in one year than over five years. BP CDS now 725 BP, according to Markit, up from 630 BP at the start of the week. Meanwhile, the cost to insure debt over five years is around 575 BP up from 536 BP. Nomura analysts earlier today said that the company's best course of action for capital raising would be equity issuance, or potentially a cash injection from a sovereign wealth fund. Robert Wine, a spokesman for BP, told Dow Jones Newswires that BP has "very strong cash flows" and access to $5B in cash on hand, $5 billion in bank lines and a further $5B in standby facilities.([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 25, 2010 12:08 ET (16:08 GMT)