Morning Commentary: Larger issues in action; Priceline, Yahoo slip; Palo Alto gains post earnings

By Rebecca Melvin

New York, Sept. 10 – A couple of the large new convertibles that priced last month and others that are not so new changed hands early Wednesday as equities were mostly lower again.

“Everything is for sale,” a New York-based trader said.

Priceline Group Inc.’s 0.9% convertibles, of which $1 billion priced last month, were seen a little lower at 95.8 in the early going, which was down 0.4 point, according to Trace data. Shares were fluctuating.

AOL Inc.’s 0.75% convertibles, of which about $380 million priced last month, also dragged a little, trading at 101.78. But shares were also lower, so those bonds were flat or expanded on a hedged basis.

Yahoo! Inc.’s 0% convertibles due 2018, another large issue of $1.25 billion, was active in a continuation of Tuesday’s action, and they were down another 0.25 point to 103.875.

Qihoo 360 Technology Co. Ltd.’s 2.5% convertibles, a fairly liquid issue of $1 billion size, fell 2 points on an outright basis to 105.9. Qihoo shares were also dropping, and were last down a little more than 2%.

An exception to early Wednesday trends was Palo Alto Networks Inc. The company’s 0% convertibles traded up nearly 3 points on an outright basis to 110.9 as shares of the Santa Clara, Calif.-based network security company jumped 8% following better-than-expected fourth-quarter earnings.

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