Midday Commentary: New Cepheid convertibles rise on debut; secondary market sees slow action

By Rebecca Melvin

New York, Feb. 5 - Cepheid's newly priced 1.25% convertibles due 2021 traded up in the early going Wednesday even as shares of the Sunnyvale, Calif.-based molecular diagnostics company slipped following pricing of the upsized $300 million of seven-year senior notes at the tight end of revised talk.

The new Cepheid 1.25% convertibles were heard trading at 103. Shares were down 45 cents, or 0.9%, at $48.68 at late morning.

There wasn't much, if any, of the new deal quoted in the Street, however, one trader said.

Elsewhere, trading in the secondary market was slow. A major winter storm, which dumped heavy snow and a wintry mix overnight in parts of the New York metropolitan area, may have had a dampening effect. But one trader said that his accounts "seem to be in or logged on from home."

Outright investors continued to look at names that had been hit by the sell-off in equities, while hedged investors were "content to watch things go up with the sell-off, a New York-based trader said. "Bonds are opening up."3

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