Morning Commentary: NXP’s recent new issue stays in focus ahead of Thanksgiving holiday

By Stephanie N. Rotondo

Phoenix, Nov. 26 – NXP Semiconductors NV’s recent $1 billion issue of 1% convertible senior notes due 2019 remained in focus in the convertible bond market Wednesday, even as overall liquidity was thin.

“I think guys are still jockeying around,” one market source said.

The deal came Monday and “quickly found a level,” the trader said, noting that the issue “almost immediately” traded into a 100.875 to 101.125 context.

“And they haven’t moved from there,” he said.

“The outright guys got a very good allocation,” the trader added. “So outright demand is on the low side.” However, hedge funds are now sniffing around “and getting a feel for how big they want to be in the name or if they want to be in it at all.”

The bond market will be closed Thursday for Thanksgiving.

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