Credit Suisse paper up, shows signs of ‘strong risk aversion’; Bed Bath & Beyond down

By Cristal Cody

Tupelo, Miss., Oct. 7 – Credit Suisse Group AG’s paper traded higher on Friday as the financial services company launched up to a $2 billion tender offer for dollar bonds and capped off a week of intense restructuring chatter.

Credit Suisse’s riskiest paper was about ¼ point to more than 4 points stronger in thin trading volume, sources said.

“Most of their paper is up,” a source said.

The 7¼% perpetual notes traded more than 3 points better at 72½ bid on $1 million of secondary action.

“Credit Suisse bonds are 400-500 bp area, implying strong risk aversion,” according to a BofA Securities Inc. note on Friday.

Stocks sold off on Friday following upbeat September U.S. employment data.

“The market was down in general,” one source said. “The names that are trading up are the names that have been beaten down, that guys want to buy and people don’t want to sell.”

Bed Bath & Beyond Inc.’s welcome was wearing thin in the secondary market with trading interest not as high, a source said.

The company’s 5.165% senior notes due 2044 (C/CCC-) were quoted at 15 bid, down about 2½ points since the end of September.

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