TEPCO CDS Explode Higher After An "Unforgivable Mistake"

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		Tech Media Wall Street Markets Strategy Sports Tools Travel Politics Latest Video Monday, March 28, 2011 TEPCO CDS Explode Higher After An "Unforgivable Mistake" It's easy to imagine nuke plant operator TEPCO going bust over the nuke plant crisis, except for the fact that it's largely backstopped by the government. All Japanese utilities are highly rated by the ratings agencies because they enjoy an unusual level of regulation and protection. That's why the market is alarmed by the fact that relations between TEPCO and the government seem to be fraying. As Markit's Gavan Nolan pointed out, CDS spreads are widening for the company, after the government said TEPCO committed an "unforgivable mistake" this weekend. The mistake: accidentally issuing a false radiation reading at the plant that was orders of magnitude too high. That caused a delay in the ongoing crisis operations, and it only confirmed the general sense that TEPCO is mishandling the crisis. If there's some sense that TEPCO could lose government support -- and it's not clear that this is even possible, especially over something like this -- the safety of TEPCO debt is called much more into question. Hence the CDS spike. (This chart is via CMA.) Read » Also On Clusterstock Today: 15 Questions Banks Will Ask In The Grueling "Situational" Part Of Your Job Interview Millionaire Investor Is Making His Hamptons Neighbors Furious With Plans To Put A Giant TV In His Yard Charts On The Amazing History Of Human Progress FROM THE RAJ TRIAL: Rajiv Goel Gets Feisty Advertisement CHART OF THE DAY: The "Pink Elephant" Of US Government Spending No One Wants To Deal With CHART OF THE DAY: Here's More Proof That The Fed Didn't Create The Commodity Boom CHART OF THE DAY: Here's What Hedge Funds Bought When They Piled Into Stocks Last Week Share this email: Buzz Facebook Twitter Digg Reddit StumbleUpon The email address for your subscription is: dwyld.kwu.careers@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Clusterstock RSS Feed Business Insider. 119 Fifth Avenue, New York, NY 10003 Terms of Service | Privacy Policy

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