First the serious stuff:
Constellation Energy shares drop 18 percent on debt fears: “Shares in utility operator Constellation Energy Group Inc (CEG.N: Quote, Profile, Research, Stock Buzz) fell 18 percent on Tuesday on fears that banks may pull its credit lines.
The stock fall, following an 18 percent drop on Monday, came despite Constellation saying the Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) bankruptcy would not have a material adverse effect on the company or its subsidiaries.
In a research note, Citigroup Gobal Markets said Constellation's stock fall was exacerbated by the Lehman bankruptcy. And Credit Suisse cited "worries that the $2 billion credit facility from UBS/RBS (Royal Bank of Scotland) could be pulled."
"Investing in Constellation is tough," said Credit Suisse.
The cost to insure Constellation's debt soared 60 percent Tuesday to a record high. Credit default swaps jumped to 478 basis points, or $478,000 per year, to insure $10 million in debt for five years, from 304 basis points on Monday, according to Markit Intraday.
Constellation stock was down $8.76 at $39.25 on the New York Stock Exchange.”
The Lehman (LEH) bankruptcy does have consequences…
Now for the funny stuff:
Constellation Energy shares drop 18 percent on debt fears: “Shares in utility operator Constellation Energy Group Inc (CEG.N: Quote, Profile, Research, Stock Buzz) fell 18 percent on Tuesday on fears that banks may pull its credit lines.
The stock fall, following an 18 percent drop on Monday, came despite Constellation saying the Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) bankruptcy would not have a material adverse effect on the company or its subsidiaries.
In a research note, Citigroup Gobal Markets said Constellation's stock fall was exacerbated by the Lehman bankruptcy. And Credit Suisse cited "worries that the $2 billion credit facility from UBS/RBS (Royal Bank of Scotland) could be pulled."
"Investing in Constellation is tough," said Credit Suisse.
The cost to insure Constellation's debt soared 60 percent Tuesday to a record high. Credit default swaps jumped to 478 basis points, or $478,000 per year, to insure $10 million in debt for five years, from 304 basis points on Monday, according to Markit Intraday.
Constellation stock was down $8.76 at $39.25 on the New York Stock Exchange.”
The Lehman (LEH) bankruptcy does have consequences…
Now for the funny stuff:
Watch the two guys right behind the reporter.
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6 comments:
CEG hit a low of $13.00 just as I posted...
What problem? We are rallying...No fear...
I agree you...What can I say...It`s crazy...I think it tells us there is more to go...The fear is not that great even if the vix is over 30 I mean 1 lb of Bs makes stock rocket you have your answer there...Good observations...I agree with you...Perhaps we need a financil ninja to answer us...
Ben,
I think the reason we have not seen more bank runs lies in a current phenomena which certainly did not exist during the Great Depression. Most people, myself included, don't typically carry cash like days past. Our society, for better or worse, has grown accustomed to direct deposit, automated bill payments, and direct access to our checking accounts through debit cards. As our banks reel in the storm of massive de-leveraging, I can't help but think that our apparent lack of concern for our cash is a direct result of our disconnection from that cash. It seems to have lost even the fiat value represented by the paper, displaced largely by the electrons actually exchanged in the system each day. Consider this just an opinion. I'd be glad to hear your views. Keep up the good work
Best regards,
Kyle
thats richard and sal from the howard stern show
Valuable resource of constellation energy news summaries: http://www.ng2000.com/fw.php?tp=constellation-energy
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