Morning Commentary: Convertibles mostly quiet in early trading; Alere gains on stock surge

By Rebecca Melvin

New York, Sept. 15 – Convertibles were quiet in the early going on Monday with the primary calendar inactive and as equities slipped, including the shares underlying some of the market’s most liquid bonds.

Among them was Priceline Group Inc., the shares of which were down almost 2% at late morning.

A few names in the real-estate-investment trust sector were active on Trace in a continuation of action Friday, when rate-sensitive names took a hit as rates widened.

New York REIT Apollo Commercial Real Estate Finance Inc., which priced new convertibles in August, saw those 5.5% convertibles due 2019 change hands at 100.978, which was down 0.48 point. Apollo shares were down 0.6%.

Elsewhere, Alere Inc.’s convertibles were in focus with a 13% surge in the underlying shares of the Waltham, Mass.-based diagnostics and services company.

Alere’s former chief executive officer Ron Zwanziger is working with shareholders to buy the health-services company and take it private for $46.00 a share, according to a filing.

Alere’s 3% convertibles due 2016 were seen at 108.25 bid, 109.25 offered with the shares up, a Connecticut-based trader said.

The Alere 3% convertible B preferreds were 350 bid, 370 offered, the trader said.

Alere shares were up $4.75, or 13% at $41.37.

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