Collateral Requirements Imposed on BP Have Increased


The collateral requirements imposed on BP by trading partners have risen since the April 20 Gulf spill, according to people familiar with the matter, in part because of ratings downgrades.

At Credit Suisse, for instance, the threshold above which BP must post collateral for trades is now $10 million, down from $30 million prior to the spill, one of these people says.

Counterparties want to see that BP is good for their trades. They might want letters of credit or they may want assets, like Rosneft—a Russian oil company that BP owns a stake in.

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Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.