Utility CDS Widen On Funding, Counterparty Fears

21 Oct 2008

Credit default swaps on utilities and independent power companies are gapping out on increasing concerns about refinancing challenges and counterparty credit risk.

--Katy Burne

Credit default swaps on utilities and independent power companies are gapping out on increasing concerns about refinancing challenges and counterparty credit risk. Tim Backshall, chief derivatives strategist at Credit Derivatives Research, said some fear the counterparties with which utilities transact energy hedges are becoming riskier and a ...

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