Credit Suisse mixed in volatile trading; tier 1 paper under pressure; Lumen notes lower

By Cristal Cody

Tupelo, Miss., March 20 – Credit Suisse Group AG topped distressed and junk trading action on Monday, a day after the announcement that CHF 16 billion of its additional tier 1 bonds will be wiped out in its government-sanctioned acquisition by UBS Group AG.

Credit Suisse’s notes rallied about 4½ points to more than 30 points on heavy trading, while the issuer’s perpetual securities sank about 18 points to nearly 30 points in lighter trading.

The 6½% notes due Aug. 8, 2023 (/BB+) caught the most interest with the notes jumping 30¼ points to 83¼ bid on $52 million of volume, a source said.

Credit Suisse’s 9¾% perpetual securities dropped 29¾ points to a quote of 4¼ bid on $2 million of trading.

Other bank preferred securities declined about 4½ points to 8½ points, including from UBS, Societe Generale, Barclays Bank plc, Standard Chartered plc, Lloyds Banking Group plc and BNP Paribas SA, a source said Monday.

Lloyds’ new 8% reset additional tier 1 perpetual subordinated contingent convertible securities (Baa3/BB-) shed about 7 points to 83½ bid on $17.7 million of volume.

In other distressed paper, Lumen Technologies, Inc.’s 4% senior secured notes due 2027 (B3/BB) slipped 1½ points to 64¼ bid on more than $11 million of trading, a source said.

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