Market eyes Fed decision to leave rate unchanged; Extra Space at par; Alpha Natural down

By Rebecca Melvin

New York, Sept. 17 – A long-awaited lift off of interest rates didn’t occur on Thursday even though Federal Reserve chairwoman Janet Yellen said following the central bank’s statement that the U.S. economy was probably strong enough to merit an increase. Only uncertainty internationally, namely in China and other emerging markets, kept policy makers from pulling the trigger.

In addition, the inflation rate is still running below the Fed’s 2% target for taking away policy accommodation even though labor market data continues to suggest health, Yellen said at a press conference.

Extra Space Storage Inc.’s 3.125% exchangeable, which debuted in the market on Wednesday, remained right around par. It was quoted at par to 100.25 with the common stock around $74.40, the trader said. “They are holding in around par.”

The new paper traded actively Wednesday after Salt Lake City-based real estate investment trust priced $500 million of the 20-year senior notes at the cheap end of talked terms.

Elsewhere, Alpha Natural Resources Inc. saw its 3.25% paper bounce around at very low levels on Thursday after the bankrupt coal producer’s credit default swap auction on Wednesday, a trader said.

“ANR was active toward the end of the day. They had their CDS auction yesterday, and it was down but popping back up,” he said.

The Alpha Natural 3.25% convertibles was seen trading between 6 and 10.5.

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