Wednesday, June 16, 2010

$100 Million of BP (NYSE:BP) Debt Acquired by Bill Gross

PIMCO co-chief investment officer Bill Gross revealed on Wednesday that he has acquired $100 million in BP (NYSE:BP) debt, as well as some Anadarko Petroleum (NYSE:APC) paper as well.

The debt acquired by Gross is short-maturing notes.

Gross said, "At this point, if you can get 10 percent on one-year paper on BP, we think it's closer to double-A than triple-C. That's a significant (thing). We started to buy some."

The cost of BP insuring its debt has risen to over $600,000 for each $10 million protected over a five-year period.

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