Bond spreads for securities firms barely budged in the wake of the merger announcement by Banker's Trust New York Corp. and Alex. Brown & Sons Inc.

Bank bond analysts and traders said that while equity investors have piled into the stock of both companies, bond investors have been much more reluctant, fearing the impact of possible interest rate hikes.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.