Bond issued by First Republic Bank FRC were rallying on Thursday, even as its stock price remained sharply lower, as investors digested a report about a potential rescue plan for the California-based lender.
The lender’s 4.375% coupon bonds due August 2046 were pegged at a spread of 379 basis points over Treasurys, down from a intraday high of 451 basis points above the risk-free rate, according to MarketAxess.
On…