Mar 18, 2023
Credit Suisse Bonds Gain in a Weekend Trading Session
(Bloomberg) -- As Swiss officials and UBS Group AG raced to put together a deal for the takeover of Credit Suisse Group Inc., bonds of the embattled lender rose in a rare weekend trading session.
One large dealer was quoting Credit Suisse bonds at levels that were as much as 6.5 points higher than Friday, according to a person with knowledge of the matter, who asked not to be identified discussing private activity in the over-the-counter market.
The bank’s $2.5 billion of senior unsecured bonds due in 2028 were up 6.5 cents on the dollar to a bid price of 99 cents, the person said. The bid price is what dealers are willing to pay for the bonds. They were being offered to investors at 102 cents on the dollar.
The same bonds traded Friday at 94.5 cents, according to the price-reporting system known as Trace.
At the prodding of regulators, UBS has put aside its initial opposition to a deal and is exploring possible structures that could be executed quickly to halt a deep crisis of confidence, Bloomberg News reported, citing people briefed on the discussions.
It’s the second straight weekend that bond dealers in New York and London were making markets in the securities of banks in crisis. In a rare Sunday trading session last weekend, the bonds of Silicon Valley Bank’s parent company gained as US government officials pledged to fully protect all depositors of the failed California lender.
--With assistance from Abhinav Ramnarayan and Priscila Azevedo Rocha.
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