Bond prices show that creditors will have to share the bill for the nuclear crisis after the new minister responsible for power companies said banks should write off some loans to Tokyo Electric Power Co.
Five-year credit-default swaps on the utility, whose Fukushima No. 1 plant was wrecked by the March 11 earthquake and tsunami, surged a record 271.9 basis points last week to 887.9 basis points after Minister of Economy, Trade and Industry Yukio Edano repeated calls for investors to help pay for the costs of the disaster, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Contracts on Tepco are the most expensive relative to global peers since June 28, the data show.