Morning Commentary: Micron 3% notes active as shares drop after disappointing guidance

By Rebecca Melvin

New York, Sept. 21 – Micron Technology Inc. was in focus in convertibles market trading early Friday after the semiconductor company offered weak revenue and earnings guidance, citing the Trump Administration’s trade tariffs on Chinese imports as a hindrance.

The Micron 3% convertible notes were among the most actively traded issues of the session.

The notes were seeing hedge fund sellers and outright buying interest, a New York-based trader said, quoting the paper at 151 versus an underlying share price of $44.00.

The hedged players were selling the paper at parity to parity plus 10 cents.

Micron’s other convertibles were not trading notably. The trader said that Micron 3% notes are the lowest dollar priced convertibles of the company and therefore the issue that would hold the most appeal for outright players that wanted to add the name.

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