Cost to insure Tesla's debt rises on growing default fears

Cost to insure Tesla's debt rises on growing default fears

5 years ago
Anonymous $hM_jrxqbr-

https://www.cnbc.com/2018/07/24/cost-to-insure-teslas-debt-rises-on-growing-default-fears.html

The amount investors must pay to insure their debt holdings in Tesla against declining credit quality rose on Monday to its second-highest price ever, implying the company is at a greater risk of default following a report that sparked concern that Tesla may need to raise funds.

Insurance on Tesla’s debt, which is sold as a credit default swap contract, increased from Friday by 13 cents to $5.96 per $100 of Tesla debt. That followed a Wall Street Journal report on Sunday that Tesla had turned to some suppliers for a refund of previously made payments in a bid to make a profit, citing a memo sent by a Tesla global supply manager.