David Alterman

Demonstrated access to capital markets can remove the perceived risks of a liquidity crunch for the issuer in the eyes of its shareholders and bond investors, many companies are either already executing or are considering higher cost or secured financings, and some names are doing so in anticipation that their borrowing base will be lowered.

The big focus right now for an E&P company is where banks will set its borrowing base in the spring, and whether the re-determination of that base affects its liquidity going forward.