SVB dominates secondary as bonds bounce higher; Ally, Huntington, Credit Suisse decline

By Cristal Cody

Tupelo, Miss., March 13 – SVB Financial Group securities made modest gains of about 3 points to more than 8 points in heavy secondary trading that dominated the bond markets Monday.

About $1.3 billion of SVB’s notes and perpetual securities traded, a source said.

The securities went out about 3 points to 8¼ points higher after sinking an average of 30 points to about 57 points Friday following the Federal Deposit Insurance Corp. seizure of the company’s Silicon Valley Bank.

On Monday, SVB’s 4.57% bonds due 2033 traded 4¾ points better at 44¾ bid on heavy secondary volume totaling $175.7 million.

SVB’s 4% perpetual preferred securities recovered 3 points to head out at 6 bid on $58 million of paper changing hands.

Other bank paper was under pressure Monday, including Ally Financial Inc. and Huntington Bancshares Inc.

Huntington Bancshares’ 4.45% perpetual securities (Baa3/BB+) slid about 14½ points to a 76 bid handle during the session on lighter trading totaling $3.7 million, a source said.

Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG and Societe Generale shed about 5 points to more than 9 points Monday, a source said.

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