Credit Suisse sinks; Deutsche, KeyCorp drop; SVB, Signature up; Diamond Sports settles

By Cristal Cody

Tupelo, Miss., March 15 – The fallout from three banks failing in less than a week spread Wednesday to Credit Suisse Group AG as its junk preferred securities sank about 24 points to 56 points on more than $106 million of secondary volume.

Credit Suisse’s 6¼% perpetual preferreds plunged 28½ points to 41½ bid on $28 million of volume.

“It’s not pretty,” a trader said.

Deutsche Bank AG’s 7½ perpetual securities moved down more than 7½ points to 84½ bid by the day’s end on $6.2 million of volume.

KeyCorp’s 5% perpetual securities were trading 9 points lower at 75 bid on $5.4 million of volume.

Meanwhile, paper from two of the U.S. banks that were closed and seized by regulators made inroads Wednesday.

SVB Financial Group’s 1.8% notes due 2026 added 5¼ points to a quote of 58¼ bid on about $54 million of volume, a source said.

Signature Bank’s 4 1/8% notes due 2029 were up 2½ points on $7 million of volume.

In other distressed issues, Diamond Sports Group LLC bonds saw little change following the company’s Chapter 11 bankruptcy announcement the previous day, a source said.

Diamond Sports’ 5 3/8% senior secured notes due 2026 (Caa3) were trading less than ¼ point higher near the 9 bid area on $11 million of volume.

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