Credit protection for British Energy now trading on an upfront basis only

“To buy protection for British Energy, there is a bid/offer of 27/33% of the notional,” said a London-based derivatives trader. Credit default swaps on British Energy traded as high as 750/1,000 basis points in mid-August following fears that it may close more power plants, but had tightened back to 500bp-mid before this week's revelations.

Credit protection for Swiss-Swedish engineering firm ABB also widened back out this week to 1,000/1,400bp, following news of the forced resignation of ch

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