Morning Commentary: Tesla 2% notes edge higher with shares; Inphi convertibles steady

By Rebecca Melvin

New York, Aug. 26 – Tesla Inc. was in focus early Monday among convertibles players, with trades in the electric carmaker’s recently priced 2% convertible notes due 2024 changing hands up nearly 0.25 point outright from previous trades as shares ticked up.

Tesla shares were up about 1% amid reports that the company is adjusting its pricing strategy in China and also considering Germany for a planned European factory. Last week, the shares dropped and its 2% convertibles traded lower as trade concerns weighed on the securities.

But Moody’s Investors Service had revised its view on the company to stable from negative last Wednesday. The rating agency said that the outlook was looking stable on improving operating efficiencies of the Model 3, growing regulatory credit sales and an adequate liquidity position, which at $5 billion was considered a positive cushion for the company.

The Tesla 2% convertibles traded last at 94.35, which was up from 94.125 late Friday. Last Wednesday, the paper had traded at high as 98.78, according to Trace data. Tesla’s common stock was up $2.665, or 1.3%, in the early going on Monday at $214.13.

In general, convertibles were buoyed by a rebound in stocks amid a change in sentiment on trade concerns.

But Inphi Corp.’s stock was still trading down. Nevertheless, the Inphi 0.75% convertible notes due 2021 were steady in trade. The bonds were last at 126.3, which was flat to better from Friday. The underlying Inphi stock was down 21.5 cents, or 0.4%, at $61.875.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.