Credit Suisse volatile; First Republic rallies; Lumen mostly higher on exchange offers

By Cristal Cody

Tupelo, Miss., March 16 – While the Swiss National Bank reported Wednesday it would provide Credit Suisse Group AG with additional liquidity, the issuer’s junk preferreds were seen all over the place in volatile trading on Thursday.

Credit Suisse’s 7½% perpetual securities (/B+) lost 3 points on $14.75 million of volume but were later seen 5 points higher on lighter trading totaling $6 million.

On Wednesday, the issue plunged 42½ points as Credit Suisse’s riskiest paper shed about 24 points to 56 points on more than $106 million of volume.

The financial space continued to dominate trading on Thursday in the wake of the collapse of Silicon Valley Bank and Signature Bank with the day ending with the unusual step of 11 major banks coming to the rescue of First Republic Bank by making $30 billion of deposits to ensure the bank has liquidity.

First Republic Bank’s subordinated notes rallied on more than $40 million of paper traded, a source said.

The bank’s 4 5/8% subordinated notes due 2047 (Baa1/BB-) went out 12½ points higher at 70 bid on $18 million of supply.

In other distressed issues, Lumen Technologies, Inc.’s notes improved about 4 points to 10 points after the company launched exchange offers, a source said.

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