Credit Suisse mixed, CDS spreads widen; Goldman preferreds soft; Qurate finds footing

By Cristal Cody

Tupelo, Miss., Dec. 2 – Credit Suisse Group AG moved back to the spotlight with the junk securities trading mostly lower before seeing gains on Friday and the firm’s credit default swap spreads more than 130 basis points wider this week.

The perpetual notes traded about 1¾ points to more than 4 points higher, a source said.

The 9¾% perpetual securities (/B) recovered 3 1/8 points by the close with the issuer among the most active names seen in the secondary market.

The securities were quoted at 85¾ bid and yielding over 14% on $14 million of volume.

Credit Suisse’s perpetuals traded down as much as 6 points plus earlier in the week.

Other financial preferred securities also have been active in the secondary market.

Goldman Sachs Group Inc.’s 4% perpetual securities (Ba1/BB+) fell 1¾ points over Friday’s session, a source said.

The issue was quoted at 76¼ bid on less than $1 million of paper traded.

Distressed home shopping network owner Qurate Retail Inc. saw good news this week with the company’s paper and CDS spreads better, sources said.

The 8½% senior debentures due 2029 (B2/B-) added more than 2 points to trade with a 54 handle on Friday in light trading under $2 million.

Qurate also posted tighter CDS spreads by more than 100 bps for the past week.

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