Dynegy, Reliant Blaze Hedging-Lite Trail

Terzo, Gerelyn
May 2006
Investment Dealers' Digest;5/8/2006, Vol. 72 Issue 18, p7
Trade Publication
The article reports on the business approach done by Dynegy and Reliant Energy. The companies have decided to remove hedges because of their experiences in hedging years ago and that they find hedging expensive. Another reason of hedging-lite strategy is that these companies will get their collateral back enabling them to repay debts. On the other hand, analysts still say that while equity holders gain from hedging-lite strategy, bondholders turned out to be the losers.


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