Morning Commentary: Convertibles trading light; Arconic, RPM International active

By Abigail W. Adams

Portland, Me., July 5 – Trading volume remained light in the convertibles space in the return from the July 4 holiday with about $24 million on the tape early in Thursday’s session.

Few names saw more than $2 million bonds trade, a source said.

Alcoa Corp.’s 1.625% convertible notes due 2019 were among the most active of the morning. The notes were seen trading at 100.375 with stock up more than 3% early in the session.

The Pittsburgh-based aluminum manufacturer’s convertible notes have been active in the latter part of June as the company works to bring a smelting operation in Indiana back on line to increase domestic aluminum production capacity.

RPM International Inc.’s 2.25% convertible notes due 2020 also some trading activity early in Thursday’s session.

The 2.25% notes were seen trading at 121.5 with stock down 20 cents to 30 cents early in the session.

RPM’s convertibles trade like common equity and were moving alongside the stock, a market source said. “It was probably a swap trade,” the source said.

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