If BP PLC was wondering whether selling a package of U.S. Assets for as much as $10-billion is a good idea, the market is certainly casting its vote in favour.
The price of insuring BP bonds against default using the credit default swap market has plunged by 10 per cent Monday on the news of a possible deal, according to CMA Datavision.
The assets for sale include offshore fields in Alaska.
Potential buyer Apache Corp. meantime is watching its spreads blow out by more than 20 per cent.
That speaks to the investor view of risk of offshore production anywhere in the U.S in the wake of the Gulf of Mexico spill.
Follow us on Twitter: