BP is taking another big hit today as 'vague' bankruptcy rumors are hitting the blogosphere (twitter-sphere)? Hiring certain lawyers or such stuff.
Keep in mind if your a hedgie who is short BP it is a very easy way to make money in today's casino - plant a rumor, get your hedgie friends to spread it, buy some CDS to the spreads explode showing someone knows something and away you go. You can take down a country or a company. ;)
- BP’s credit default swaps not only surpassed 300 basis points for the first time today, but were approaching “an amazing 400 basis points” notes Markit, despite the fact BP still has a double-A credit rating.
BP CDS are looking positively AIG like - someone just made a whole lot of money on this instrument.