Morning Commentary: Convertibles quiet ahead of weekend; Cobalt trades in upper 60s; Trinity shares pop

By Rebecca Melvin

New York, July 24 – U.S. convertibles were ending the week on a quiet note on Friday, as equities stabilized and a lack of a deal calendar meant there was little pressure on market players to make decisions, a New York-based trader said.

Even energy names, which had been weakening this past week, were stable with little by way of trades to report, the trader said.

Cobalt International Energy Inc.’s convertibles traded a bit, with the Cobalt 2.625% convertibles dipping into the 60s this week and last seen at 67.5. Cobalt’s common stock was down a nickel at $7.95.

There was also a little bit of Chesapeake Energy Corp. trading. But regarding pricing, the trader said, “nothing is moving. It’s more or less a nip here, a tuck there.”

The new Pattern Energy Group Inc. convertibles, which debuted in the market on Thursday, were not heard in trade after they slipped below issue price and stabilized there late Thursday.

In earnings news, Trinity Industries Inc.’s common shares popped after the Dallas-based maker of rail cars beat second-quarter earnings estimates and guided full-year earnings above consensus, but missed on revenue.

The Trinity 3.875% convertibles due 2036 were not seen to have traded on Friday, but changed hands on Thursday at 124, according to Trace data.

Trinity’s common shares were up $2.77, or 11%, at $28.74.

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