Signature Bank paper higher; Credit Suisse drops as issuer reports ‘material weakness’

By Cristal Cody

Tupelo, Miss., March 14 – Banks shook off some losses from the quick collapse Friday of Silicon Valley Bank, though some issuers remained under pressure on Tuesday.

Signature Bank, shut Sunday by New York state regulators, perked up on more than $100 million of bonds trading, a source said.

Signature Bank’s 4% notes due 2030 hit the 19½ bid area, up 2½ points, on $69 million of volume.

The bank’s 4 1/8% notes due 2029 rallied 1½ points to 22½ bid on $46 million of paper changing hands on Tuesday.

The heavy trading in the prior two sessions in SVB Financial Group’s securities amidst the seizure on Friday of the company’s Silicon Valley Bank slowed on Tuesday with the paper seen trading about 2 points to over 5 points better in thin supply, a source said.

Credit Suisse Group AG came under renewed pressure after the company reported a “material weakness” in its annual financial report on Tuesday, and the paper gave back about 4 points to more than 8 points on more than $35 million of secondary supply, a source said.

Credit Suisse’s 9¾% perpetual securities (B) dropped about 5 points by the day’s end to the 71½ bid range on $21 million of volume.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.