Morning Commentary: Chesapeake convertibles weaken; market mostly quiet; primary mute

By Rebecca Melvin

New York, Feb. 25 – Chesapeake Energy Corp.’s 2.5% convertibles slipped back a point or so in early trading Thursday after the issue gained 30% on Wednesday on news of debt buybacks and other measures being taken to conserve cash and improve the company’s balance sheet.

The Chesapeake 2.5% convertibles due 2037 were seen at 41.25 after rising to 43 on Wednesday, which was up from 33 previously.

Chesapeake shares were slipping back as well after a 23% jump on Wednesday.

The U.S. primary market was silent again in the early going, making it a full week since a new deal has priced.

The last deal was Invacare Corp.’s $130 million of notes, which priced Feb. 18. So far the U.S. market has seen only $1 billion of new paper in four deals year to date.

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