It is time to buy TRANSOCEAN (NYSE: RIG)

Anadarko's credit default swap costs also surged 145 basis points to a record of 575 basis points and Transocean's CDS costs jumped 70 basis points to a new high of 575 basis points, Markit said.

With no dividend and a recent negative earnings report (before the disaster), Transocean presents greater risk. On the plus side, RIG is currently selling at about 75 percent of book value.

In a lawsuit filed May 21 in the Houston Division of the Southern District of Texas, the insurers say BP submitted a notice of claim to the Transocean Excess Insurers via e-mail. But the plaintiffs claim BP is not eligible for more coverage since the pollution is of BP's making.