BP (NYSE:BP) May Sell Bonds to Chinese to Meet Gulf Liabilities

If BP (NYSE:BP) ends up selling bonds to the Chinese, which they reportedly have been thinking about, it would be a change in direction from the desired route of selling assets to raise the approximate $40 billion to meet expected liabilities from the Gulf oil spill.

That could imply a desire to hold on to some valuable assets they may otherwise have to divest themselves of.

BP has been selling bonds recently, but for the most part that has been for other purposes and not necessarily tied directly to Gulf liabilities.

Taking on more debt has risks and higher costs, which would be reflected in an increase in the cost credit-default swaps, which protect buyers from default. BP is paying about twice for credit default swaps as they had before the oil spill.

BP closed Wednesday at $43.27, up $0.38, or 0.89 percent.