Monday, May 21, 2007

Williams Cos. Bond Risks Fall on Sale of Assets, Credit-Default Swaps Show

(Bloomberg) -- The perceived risk of owning bonds of
Williams Cos. fell to the lowest in at least five years on
speculation that the sale of the pipeline company's energy-
trading assets will boost its debt to investment grade,
according to credit-default swap traders.

Credit-default swaps based on $10 million of the Tulsa,
Oklahoma-based company's bonds dropped $29,500 to $76,500,
according to CMA Datavision. That's the lowest since at least
April 2002, prices from Credit Suisse Group show. A decrease in
the five-year contracts, used to bet on the company's ability to
repay debt, signals improvement in the perception of credit
quality.


Read more at Bloomberg Bonds News

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