BP has 'most shorted' bond in US

Growing negative sentiment surrounding oil giant BP has led to one of its bonds being the most shorted of any US investment grade corporate issue.

The level of shorting of BP bonds has increased since the beginning of June and more of its bonds are being borrowed for shorting than its shares. The FT reports the most heavily borrowed US dollar-denominated investment grade corporate bond is a 4.75% 2019 bond issue from BP but 24% of the $1bn issue is on loan with most of this borrowing being done to cover short sales. Borrowing of BP shares has, however, contracted to 1.3% of its UK shares in issue from just below 2% for the UK listing in mid-June. Transocean, owner of the oil rig that burst in the Gulf of Mexico in April, also...