Morning Commentary: Convertibles mostly quiet at open; Tesla quiet despite stock drop

By Rebecca Melvin

New York, July 23 – Convertibles were mostly quiet in the early going with summer Monday mode in effect, a New York-based market source said.

There were no new issuance announcements and the secondary market was a little heavy as market players have been generally sellers of extant paper with an eye toward making room for new issues that are seen on the horizon.

Even the convertibles of Tesla Inc., which was under pressure due to news that it has asked some suppliers to return a portion of its payments to help the electric car maker’s financial position, were not seen in trade.

Tesla’s convertible A tranche was seen to have traded and held up better than expected given the move in the company’s common shares.

The Tesla A tranche was seen at 103.25 with the stock down as much as 6% in the early going.

That bond price looked to be on the offer side, and was better than expected, the market source said.

The shorter-dated Tesla 2.375% convertible C tranche appeared to be untraded.

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