As the day approaches when the oil spill in the Gulf of Mexico is stopped, BP (NYSE:BP), and other with potential exposure to the accident like Anardarko (NYSE:APC), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), have had the cost of credit default swaps fall as the perception liabilities won't be as much as believed, and the fallout will be manageable is starting to permeate the industry and its investors.
Moody's (NYSE:MCO) also upgraded the overall refining sector from Negative to Stable, giving energy stocks a boost Monday.
Credit default swaps are insurance acquired to protect against potential fault on debt by companies, and according to CMA data, BP swaps lost 36.5 basis points to 334; Transocean Ltd. dropped 42 basis points to 447.3; Anadarko's fell 41.8 basis points to 477.8; and Halliburton was down 12 basis points to 152.1.
BP closed Monday at $36.76, gaining $2.71, or 7.96 percent. Market cap is at $155.09 billion.
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