First Republic Bank notes hit teens; QVC flat to higher; Bed Bath & Beyond bonds up

By Cristal Cody

Tupelo, Miss., April 28 – Paper from First Republic Bank again dominated distressed secondary trading with the notes down more than 10 points to a handle in the teens on Friday after sinking over much of the week.

The 4 3/8% subordinated notes due 2046 (B2/B-) slid 10¼ points to 16 bid on $15.25 million of secondary volume, a source said.

The notes plunged more than 30 points this week.

First Republic Bank’s stock also slid more than 40% on Friday.

In other paper, home shopping network QVC Inc.’s notes traded flat to about 1/8 point higher on more than $19 million of secondary volume.

QVC’s 4.45% senior secured notes due 2025 (B2/B-/B+) rose 1/8 point to 73 7/8 bid on $6.7 million of trading, a market source said.

Secondary interest on Friday also turned toward bankrupt Bed Bath & Beyond Inc.’s long-dated paper with the 5.165% senior notes due 2044 (C/D) up ¼ point at 3¼ bid on more than $10 million of trading, a source said.

The retail and health care spaces are driving a higher default risk in the U.S. and Canada markets, S&P Global Ratings said in a release on Friday.

The U.S. trailing 12-month speculative grade corporate default rate could reach 4% by December, S&P said.

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