How do bond yields effect fundamentals?
Looking at ATP Oil and Gas Corp, here is an excerpt from a 'plunged' fool article:
"In the third quarter, production averaged 24,000 barrels of crude, down from 31,000 in August, and a pair of the company's wells have slowed production. The lower production has sent ATP's bond yields skyrocketing, a major problem for a company that has $2 billion in long-term debt."
-I can see that maybe this lower production is a fundamental problem, but the increase in ATP's bond yields is simply because of investor fear right? Rising ATP bond yields should incur no higher interest expenses for ATP because the rise in yields is due to lower prices rather than higher payouts....I feel like I am misunderstanding some crucial bond concept, so I need your help here.