Signals From CDS Widening
By Ploutos:Recently, I published an article that discussed the constituents of the S&P 500 with the highest and lowest credit default swap spreads. Given the lack of public information on credit default swap spreads, this can be difficult data to obtain for Seeking Alpha readers. Widening credit default swap spreads can be a sign that investors are becoming more concerned about the health of a company's balance sheet. Investors may wish to apply a higher discount rate to the company's future earnings. Below is a list of the ten S&P 500 constituents that have seen their credit default swaps spreads widen the most year-to-date.
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Chesapeake Energy Corporation (CHK) is the nation's second largest producer of natural gas. The Oklahoma City-based company tops this list due to a combination of weak operating results and accusations of corporate malfeasance directed at company co-founder and chief executive officer, Aubrey McClendon. FoundedComplete Story »