Credit Suisse preferreds drop; First Republic gains; DISH mixed; WeWork declines

By Cristal Cody

Tupelo, Miss., March 21 – Distress in the banking space remained in the forefront of market focus Tuesday ahead of the Federal Reserve’s widely anticipated monetary policy announcement with paper mostly higher in heavy trading.

Credit Suisse Group AG notes rallied between 6¾ points and 7¾ points, while the perpetual securities continued to decline following the Swiss Financial Market Supervisory Authority’s statement on Sunday that CHF 16 billion of Credit Suisse’s AT1 debt will be written off as part of its acquisition by UBS Group AG.

Credit Suisse’s 5¼% perpetual notes (B1/C) dropped 20¾ points to 5¾ bid on $3 million of volume Tuesday, a source said.

Paper from First Republic Bank, infused with $30 billion of deposits last week by 11 major U.S. banks, improved following reports that J.P. Morgan was advising the bank.

First Republic Bank’s 4 3/8% subordinated notes due 2046 (Baa1/BB-) rose 1¾ points to 60¼ bid on $12 million of trading, a source said.

In other active distressed paper, DISH Network Corp.’s 7 3/8% senior notes due 2028 (B3/B) rose more than 1 point to 58¾ bid on $18.65 million of volume, a source said.

WeWork Inc.’s 7 7/8% senior notes due 2025 (CC) moved lower to 56¾ bid on $7.25 million of trading following a ratings downgrade, a source said. The notes have declined about 3¾ points since Friday.

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