SVB up after Chapter 11 filing, paper recovers; WeWork gains on funding transactions

By Cristal Cody

Tupelo, Miss., March 17 – The contagion that engulfed the banking industry over the week appeared to quiet on Friday, despite the Chapter 11 bankruptcy filing announced early in the session by SVB Financial Group.

SVB’s bonds were recovering from steep distressed handles the paper hit a week ago and on Monday after SVB’s Silicon Valley Bank was seized by the Federal Deposit Insurance Corp., sources said.

SVB Financial Group’s 1.8% notes due 2031 were back to trading on a handle in the 60s, up from the 44¼, 44½ range on Monday and the 39 bid area a week ago.

“I don’t know if it was expected, but it’s not that huge in context of the paper that’s traded,” an investment fund portfolio manager said Friday. “The bonds relative to when the news first came out are up.”

Secondary markets overall quieted with tone weaker and Treasury yields down on Friday, sources reported.

Light trading volume was seen in WeWork Inc. following its announcement of new funding and plans to eliminate debt and extend a debt maturity wall from 2025 to 2027.

WeWork’s 7 7/8% senior notes due 2025 rallied 5 points on the day to 60½ bid and were going out about 15 points better on the week, sources said.

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