FXCM bumps up on positive earnings; Herbalife adds outright, unchanged dollar neutral

By Rebecca Melvin

New York, March 13 – FXCM Inc.’s convertibles gained on Friday after the beleaguered New York-based foreign exchange services company reported better-than-expected fourth-quarter results.

“They opened strong, and there was a slow grind higher,” a New York-based trader said of the FXCM convertibles. The bonds ended at about 75.

Elsewhere, Herbalife Ltd.’s convertibles moved up on an outright basis but were unchanged on a dollar-neutral basis as shares of the Cayman Islands-based nutrition company popped in response to reports of a federal probe involving Bill Ackman, Ackman associates and potential manipulation of Herbalife stock.

Depomed Inc.’s convertibles weakened on Friday, contracting between 0.5 point to 1 point or 2 points on the back of news of the company’s $575 million financing deal, inked for the previously announced acquisition of Depomed’s U.S. rights of a Janssen Pharmaceuticals franchise.

Synergy Pharmaceuticals Inc. was a notable name this past week. The Synergy convertibles surged along with underlying shares of the New York-based pharmaceutical company early in the week into Wednesday before pulling back slightly. On Friday, the Synergy bonds were quoted at 2 points over parity, which is 113.67, according to a convertibles analyst.

Overall, the health care/biotech space was better to buy but wasn’t overly active, the analyst said.

The tone of the convertibles universe overall was similar: “It’s pretty quiet,” a trader said.

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