Morning Commentary: Market quiet, focuses on earnings; Accuray sees outright interest

By Rebecca Melvin

New York, July 9 – U.S. convertibles trading action was languid early Wednesday, and the planned Macquarie Infrastructure Co. LLC deal for $250 million of new convertibles wasn’t getting a lot of interest ahead of final terms set to be fixed after the market close, a New York-based trader said.

“Things have really slowed down here the last week and a half,” the trader said.

The new Macquarie deal hasn’t attracted a lot of interest, he said, even though the market is still starved for paper.

As earnings season kicks off, there is an expectation that hopefully volatility will pick up and spur market activity, but there is really no evidence of that yet, the trader said.

“Hopefully, it will, but it hasn’t yet. The S&P is at 2,000, so if it’s off 10 or 15 points, it’s really meaningless,” he said.

One bond that has generated some interest in the last few days is the Accuray Inc. 3.5% convertible, which is down to about 95ish with a stock move lower.

The Accuray bonds were called unchanged on a hedged basis, but the outright move lower since Monday has attracted some outright interest at the lower, absolute level, and there has been some trading activity in that name.

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