Residential Capital LLC’s bonds rose after a report that Ally Financial Inc. won’t put the mortgage-lending unit into bankruptcy.
ResCap’s $2.12 billion of 9.625 percent notes due in May 2015 climbed 5.8 cents to 76.3 cents on the dollar at 10:02 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the highest level since Nov. 8, before Ally was reported to have hired advisers to weigh options for the unit.
