Credit Suisse junk paper dives as distressed interest grows; Transocean bonds decline

By Cristal Cody

Tupelo, Miss., Oct. 3 – Credit Suisse AG’s notes slid about 5¾ points to more than 10 points as restructuring fears grew on Monday.

Credit Suisse’s high-yield paper declined on secondary action totaling more than $44 million, a source said.

The 7½% perpetual notes blew past the pandemic lows of March 2020 and went out down 10¾ points at 75 bid and yielding about 50%.

The issue saw light volume totaling $1.8 million.

Some of Credit Suisse’s paper was seen on Monday with handles in the 60s.

Credit Suisse’s 6 3/8% perpetual notes dropped more than 7 points to the 66 bid area on $9.35 million of secondary supply.

Credit Suisse’s credit default swap spreads were reported by Prospect News early Monday 2.5 basis points wider.

Oil prices opened the week stronger as chatter grows that the Organization of the Petroleum Exporting Countries and partners will cut crude oil production at Wednesday’s meeting, a market source said.

West Texas Intermediate crude oil benchmark futures for November deliveries settled up $4.14 at $83.63 a barrel.

Transocean Inc.’s 8% debentures due 2027 (C/CCC-) gave back more than 4¼ points to head out at 58 bid on less than $1 million of secondary activity, a source said.

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