Credit Suisse junk notes lower; Embarq softens in active trading; Carvana sinks

By Cristal Cody

Tupelo, Miss., Oct. 5 – Credit Suisse Group AG’s riskiest paper saw further losses on Wednesday, trading down about 3¼ points to 3¾ points and carrying yields of about 20% to 25% in mostly light secondary action.

The notes had steadied on Tuesday after sliding about 5¾ points to more than 10 points on Monday on restructuring fears.

Credit Suisse’s 7½% perpetual notes shed about 3¾ points to 83 bid on $2.71 million of paper traded, a source said.

Embarq Corp.’s 7.995% notes due 2036 (Caa2/BB/CCC) slipped more than ¾ point to near the 49 bid area on Wednesday with the issue among the most active distressed names seen during the session, a source said.

Secondary volume totaled about $18.5 million.

Distressed secondary supply overall was light with the Yom Kippur holiday and upcoming long Columbus Day holiday weekend, according to market sources.

“It’s a little slow with the holiday,” a source said. “The market’s been flipping around. Things were better Monday and Tuesday – today’s it’s a bit weaker.”

Carvana Co.’s 5 5/8% notes due 2025 (Caa2/CCC) dropped more than 3 points by the day’s end on about $2.5 million of volume.

The notes went out at 71¾ bid, a source said.

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