(Bloomberg) -- PG&E Corp. bonds, which gained late last week as a regulator eased concerns over a possible bankruptcy, are falling this morning after the utility disclosed that a second power line failed the morning California's deadliest fire began.
The company's 3.5 percent notes due in 2020, the third most active in the investment-grade market this morning, are trading 60 basis points wider than where the securities closed on Friday. Its longer-dated bonds, 6.05 percent due in 2034, are about 15 basis points wider.
Several of the company's bonds have seen dramatic price swings over the past several days, unusual for a utility, a sector known for its defensive, non-cyclical, and stable nature. These moves have come as authorities zero in on the utility's equipment as a possible cause of the fire.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
“The market is not treating this like a utility anymore,” said Morningstar analyst Travis Miller in a phone interview on Friday.
--With assistance from Brian Eckhouse.
To contact the reporter on this story: Natalya Doris in New York at ndoris2@bloomberg.net
To contact the editor responsible for this story: Christopher DeReza at cdereza1@bloomberg.net
©2018 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
