French Mortgage Lender CCCIF’s Bonds Drop on Exchange Suspension

The bonds of Caisse Centrale du Credit Immobilier de France, the residential mortgage lender, slumped in the over-the-counter market after the securities were suspended at Euronext Paris and the Luxembourg Stock Exchange.

CCCIF’s 850 million euros ($1.1 billion) of 3.75 percent bonds due 2015 fell 4.61 cents on the euro to 96.42, Bloomberg Bond Trader prices show. The yield relative to the benchmark swap rate jumped to a four-month high of 428 basis points from 241 yesterday.

Yields on the Paris-based lender’s debt jumped after the securities were suspended on Euronext Paris at the request of France’s financial markets regulator on May 8 “pending a press release and until a new notice,” according to a NYSE Euronext statement e-mailed by the Autorite des Marches Financiers. Luxembourg’s financial supervisor also requested the suspension of trading of the lender’s bonds.

The regulators also suspended trading in the securities of CCCIF’s covered bond issuer CIF Euromortgage.

To contact the reporters on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net; Heather Smith at hsmith26@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net

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