Constellation Energy (CEG) Plummets on Collateral Concerns
Constellation Energy (CEG) plummeted to a 2 year low today with record volume after it was revealed that a credit rating downgrade could force the company into posting billions of dollars in extra collateral. High volatility in fuel and electricity prices have increased the risk of a downgrade, and the company could be forced to post over 3 billion collateral to cover those contracts if its debt is downgraded 3 levels. It’s important to point out that this hasn’t happened yet, but investors are concerned about that and ongoing concerns about transparency around the company’s cash flows
More on this topic
(What's this?)
Water for Fracking
(Wealth Daily, 5/17/12)
Warren Buffett: Why Buying Constellation Energy Group Is A Sweet Deal
(Investment U, 10/1/08)
The End of the Beginning?
(Money Morning, 4/13/12)
Energy Investments
(Energy and Capital, 5/16/12)
No comments yet.
Leave a comment