Are BP (BP) Bonds A Great Investment?

Troubled oil giant BP (BP) is considering issuing between $5 and $10 billion dollars worth of bonds. BP needs to raise cash to fund its government run fund and for the pending lawsuits that the oil company faces.

Famed bond investor Bill Gross recently bought $100 million dollars of short term BP bonds through his company PIMCO. This begs the question, are BP bonds a good buy?

BP's long term bonds are expected to yield anywhere from 8 to 10 percent. This is a great return but investors need to be very careful buying any long term debt of BP. It still remains unclear exactly how much money BP is on the hook for. Investors should only look to invest in short term (1 year or less) BP debt until there is more clarity as to the extent of BP's liabilities.