CNBC reporting that BP is preparing to launch a $10 billion bond issue. It is unclear if that other most loved company in America, Goldman Sachs, will be lead underwriter. The fact that the firm is willing to come to market at a time when its 5 year spreads are in the 500 bps ballpartk is very troubling, and likely indicative that courtesy of counterparty arranagements collapsing, the oil company's access to liquidity must be getting problematic. Whether or not this is also a signal that the firm anticipates much greater cash outflows than just the $20 billion escrow is unclear, but seems likely, as BP will now do all it can to shore up as much liquidity as it can. At least the firm did not announce a stock underwriting at this new baseline stock price, which would be a huge blow to equity longs.