Morning Commentary: Convertibles trading volume light; Teradyne active; Sempra better

By Abigail W. Adams

Portland, Me., July 12 – The convertibles space opened Thursday with light trading volume with the trading frenzy surrounding the new paper to price this week quieting down. There was about $40 million on the tape early in the session.

Teradyne Inc.’s 1.25% convertible notes issue due 2023 was the volume leader with $5 million on the tape.

The 1.25% notes were seen trading at 136.25 versus a stock price of $39.50, an increase of about 63 cents, a market source said.

Trading activity surrounding Sempra Energy’s newly priced 6.75% series B mandatory convertible preferreds due 2021 settled on Thursday with only 5,300 shares seen changing hands, a market source said. The preferreds were seen slightly improved from Wednesday’s close.

The preferreds traded up to $101.85 early in Thursday’s session, an increase of about 52 cents. While Sempra’s series B mandatory convertible preferreds improved, Sempra common stock was unchanged to down slightly. Common stock was seen down about 7 cents to $115.61 early in the session.

Sempra’s 6% series A mandatory convertible preferreds due 2021 continued to trade down with the preferreds dropping another 26 cents to $102.21 early in the session.

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