Morning Commentary: Primary takes a pause; Trinity Industries pops on court ruling; CalAmp firms

By Stephanie N. Rotondo

Seattle, Oct. 2 – After a pretty active week in the primary portion of the market, the convertible bond arena was taking a bit of a breather on Monday.

Instead of new issues taking up the day’s activity, existing, off-the-run names were being eyed.

Trinity Industries Inc.’s 3.875% convertible notes due 2036, for instance, were making waves following news on Friday that an appeals court had overturned a $663 million fraud verdict against the company.

The convertibles were up over 12 points in early dealings, trading around 148.5, according to a market source. That coincided with an over 10% gain in the company’s underlying equity (NYSE: TRN)

Meanwhile, CalAmp Corp.’s 1.625% convertible notes due 2020 were also on the rise, albeit not as much as Trinity.

A trader said the notes were up 1.5 points at mid-morning, trading around 108.5.

The company’s shares (Nasdaq: CAMP) were up over 1%.

The gains came on the back of the company’s earnings release on Friday, which came in stronger than expected. Furthermore, the company issued guidance for the current quarter that was in line to better than what market players were predicting.

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