The up and down narrative of BP (NYSE:BP) continues on, as concerns there may be some oil seepage after putting on the new containment cap raised the cost of insuring debt by 7.2 percent on Monday morning.
Credit default swaps are what are used to protect against defaulting on the debt of a company, and that's what went up in price.
This has been a consistent theme for BP and other oil companies with exposure to the Macondo oil well spill, as the bad news drives costs up and good news brings it back down.
Obviously this has been a story of rise and falls, and turbulent costs that move every time a different story emerges.
Recently credit default costs had fallen on the good news of containing the leak, but the recent potential for even partial or small failure shows the volatility connected to the insurance market in this particular area.
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