In Brief: Bond Traders Look More Kindly at BT

Third-quarter earnings and the appointment of Frank Newman as the new chief executive officer at Bankers Trust New York Corp. were well received by the bond market.

The premium investors demand to trade bonds fell last Thursday, reflecting increased confidence in the $103 billion-asset bank.

Confidence had been shaken by a recent "negative outlook" notice by Moody's Investors Service and news about the bank's escalating legal battle with Procter & Gamble Co.

Some analysts said the bond rebound was, in part, attributable to the hiring of Mr. Newman.

"I think that brings them back to about square one," said Jean I. Sievert, a bank bond analyst at Chase Securities Inc., referring to where the bonds were trading before Moody's action.

Moody's had placed the company on negative outlook following the racketeering amendment Procter & Gamble had added to its derivatives suit. "It's rare for an outlook change to have an effect like that," said Ms. Sievert.

Analysts said, however, the earnings report and the new executive appointment had clearly pleased the market.

"Mr. Newman adds a lot of credibility to the bank," said Ethan M. Heisler, a bank bond analyst at Salomon Brothers Inc.

"I'm delighted with the day's developments," said Ms. Sievert, who continues to see value in the Bankers Trust name. "It's exactly what they needed."