First Republic Bank jumps in December; Signature Bank stages late-year rally; SVB dips

By Cristal Cody

Tupelo, Miss., Dec. 19 – Deeply distressed bank paper is mostly moving higher in strong secondary trading in December.

First Republic Bank’s 4 5/8% subordinated notes due 2047 rose ¾ point to 6 3/8 bid on more than $21 million of volume with more than an hour still left in the session, a source said Tuesday.

The bank’s 4 3/8% subordinated notes due 2046 also jumped 1½ points to 6½ bid on more than $21 million of volume reported.

Signature Bank New York’s 4% subordinated notes due 2030 have climbed 8¼ points over the last two sessions. The issue was up 2½ points headed into the close Tuesday at 28½ bid on more than $8 million of volume, a market source said.

The issue has jumped more than 20 points since the end of November.

Both First Republic and Signature Bank were among three regional banks that collapsed in March and sparked a global banking crisis over the spring term.

Paper from SVB Financial Group, which operated the third bank in the March collapse, Silicon Valley Bank, was lower in light trading over the day, a source said.

SVB’s 4.57% senior notes due 2033 fell ¼ point to 63¾ bid on $3 million of secondary activity Tuesday.

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