PG&E Bond Prices Plunge on Planned Bankruptcy Filing

The video discusses PG&E's financial decline, highlighting its recent drop from investment-grade credit ratings and bond value. It explores the unexpected market reaction, particularly in the triple B segment, and raises concerns about potential surprises in the bond market. PG&E's financial challenges are detailed, including its market capitalization, debt, and liabilities related to wildfires, questioning its financial stability despite being a major California utility.

What was the recent change in PG&E's bond value?

• Increased to 120 cents on the dollar

• Dropped to 85 cents on the dollar

• Remained at 100 cents on the dollar

• Increased to 110 cents on the dollar

Why was the drop in PG&E's bond value surprising?

• Because it had no debt

• Because it was expected to rise

• Because it was the highest-rated company

• Because credit markets usually anticipate balance sheet issues

What is the significance of the triple B segment in the market?

• It is the lowest investment grade

• It is not related to investment grades

• It is the most stable market segment

• It is the highest investment grade

What is PG&E's current market capitalization?

• $50 billion

• $30 billion

• $4.7 billion

• $22 billion

What potential liabilities does PG&E face?

• $5 billion from environmental fines

• $22 billion from debt

• $10 billion from lawsuits

• $30 billion or more from wildfires