Unusual... Pacific Gas & Electric Company’s swift fall into bankruptcy was certainly unusual. Bank of America’s analysts compiled some statistics on what they termed “investment grade defaults” after Pacific Gas & Electric Company (PCG) management announced that the utility and its parent company (PG&E Corporation) intended to file for bankruptcy protection. PCG’s January 2019 bankruptcy filing is just the 26th instance over the past 20 years in which a company has defaulted within a year of being included in the ICE BofAML investment grade corporate bond index, with PCG’s 2001 bankruptcy filing also on the list. Moreover, PCG’s bankruptcy filing marks just the 4th instance over the past 20 years in which a company has defaulted while still included in the investment grade index.
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