SVB Financial modestly better; Credit Suisse rallies; CURO higher; Cablevision declines

By Cristal Cody

Tupelo, Miss., Dec. 5 – Financial paper improved on Monday but continues to trade cheap heading into the year-end, market sources reported.

SVB Financial Group’s 4.1% perpetual securities (Baa2/BB) edged up less than ¼ point on active trading totaling more than $10 million over the session.

Credit Suisse Group AG’s paper continued to see a turnaround with the perpetual securities about 2½ points to more than 6 points higher on the day.

Credit Suisse’s 9¾% perpetuals (B) rallied 3½ points on the heels of a gain of 3 1/8 points on Friday.

CURO Group Holdings Corp.’s notes also saw some improvement in steady trading over the session.

CURO's 7½% senior secured notes due August 2028 (Caa1/CCC+) rose 1¾ points.

Market tone was soft after a slew of economic data reports, including durable goods orders, were released on Monday.

The S&P 500 index closed down 1.79%.

The iShares iBoxx High Yield Corporate Bond ETF gave back 70 cents, or 0.93%, to head out at $74.86.

The Fear Factor index moved back above a 20 handle. The CBOE Volatility index climbed 9.39% to $20.85 by the close.

Oil prices slid more than $3 on reports of an imminent E.U. and U.K. ban and global price cap on Russian oil imports.

West Texas Intermediate crude oil benchmark futures for January deliveries settled down $3.05 to $76.93 a barrel.

In other distressed issues, Cablevision Systems Corp. subsidiary CSC Holdings LLC’s paper declined in the first session back after the company was downgraded on Friday by Moody’s Investors Service.

CSC’s 7½% notes due 2028 (Caa1/B-) fell nearly ½ point in strong trading that climbed to more than $13 million.

SVB perpetuals edge up

SVB’s 4.1% perpetual securities (Baa2/BB) edged up less than ¼ point to the 56 bid area in active trading on Monday, a source said.

Secondary supply totaled $10.24 million.

The Santa Clara, Calif.-based parent of Silicon Valley Bank announced new leadership on Monday of SVB Private and Silicon Valley Bank UK.

Credit Suisse jumps

Credit Suisse’s paper traded about 2½ points to more than 6 points higher as the week kicked off, a source reported.

The 9¾% perpetuals (B) rallied 3½ points on supply totaling $12 million over the session.

The issue went out at 89¼ bid and yielding 12.95%.

On Friday, the 9¾% perpetual notes traded 3 1/8 points higher on $14 million of volume after declining 3¾ points on $2 million of supply in the prior session.

Credit Suisse’s 7½% perpetual securities (/B+) also climbed more than 6 points to an 83 handle on Monday on $2.2 million of trading.

The Zurich- and New York-based issuer is underway in restructuring its investment bank and wealth management businesses.

CURO improves

CURO's 7½% senior secured notes due August 2028 (Caa1/CCC+) rose 1¾ points to hit 47¾ bid on steady supply of $4 million on Monday, a source said.

The issue was yielding 25.39%.

The Wichita, Kan.-based consumer credit provider sold $750 million of the notes on July 16, 2021 at par.

Cablevision softens

CSC’s 7½% senior notes due 2028 (Caa1/B-) fell nearly ½ point to 75 bid in secondary trading that topped $13 million on Monday, a source said.

The notes were yielding more than 14%.

CSC’s 5¾% senior notes due 2030 (Caa1/B-) also softened more than ¼ point on volume totaling more than $11 million.

The issue was quoted at 67 bid and yielding 13%.

Moody’s downgraded CSC on Friday and dropped the senior notes to Caa1 from B3 on the company’s weak operating trends in 2022 and growing subscriber loss.

CSC is a subsidiary of New York-based communications and video services provider Cablevision Systems and Altice USA, Inc.

Distressed index down

S&P U.S. High Yield Corporate Distressed Bond index one-day returns ended Friday lower at minus 0.16% versus 1.06% on Thursday, 0.26% on Wednesday, minus 0.34% on Tuesday and 0.11% at the week’s start.

Month-to-date total returns declined to 0.9% on Friday from 1.06% in the first session of December.

Year-to-date total returns widened to minus 24.78% on Friday. Returns were minus 24.66% on Thursday, minus 25.45% on Wednesday, minus 25.43% on Tuesday and minus 25.38% at the start of the prior week.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.