Deutsche Bank paper down in heavy secondary focus; Carvana declines; QVC under pressure

By Cristal Cody

Tupelo, Miss., March 24 – Deutsche Bank AG’s bonds topped the list of active junk and distressed trading action on Friday as another bank was engulfed in the financial crisis sparked two weeks ago.

The issuer came under focus as its credit default swap spreads widened over the week and further on Friday, sources said.

Deutsche Bank’s 7½% perpetual junior subordinated notes (Ba2/BB-) slid about 9½ points to 69¾ bid on more than $30 million of paper traded.

Yields on Deutsche Bank’s perpetual notes were in the 28% to 33% plus area.

Deutsche Bank’s split-rated paper was down more than 1 point, the source said.

Meanwhile, Carvana Co.’s paper treaded lower in light secondary action as the market continues to weigh its exchange offer announced on Wednesday.

Carvana’s 5 5/8% notes due 2025 (Caa2/C) fell 2 points to 60¼ bid but mostly held onto gains of about 10 points made following the announcement.

Wedbush Securities Inc. analysts said in a note released Friday that the exchange offer is “not a game-changer” and that a larger restructuring is “still likely.”

Elsewhere, QVC Inc.’s distressed notes gave back about 2¾ points to 5 points over the day, a source said.

QVC’s 4.45% senior secured notes due 2025 (B2/B-) shed 5 points to a quote of 57½ bid.

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