Morning Commentary: Convertibles, shares move lower; YY bonds offered; Neoen on tap

By Rebecca Melvin

New York, Oct. 2 – The U.S. convertibles market continued to trade weakly early Wednesday with outright investors mostly holding steady and hedged investors nibbling around the edges when pricing opportunities arose. But the market continued to feel the impact of a record month of issuance in September and the stumble in U.S. stocks to start October amid trade and economic growth worries.

Market players were offering YY Inc. convertibles early on Wednesday, a New York-based trader said. YY priced an $850 million offering in two tranches in June. The $425 million YY 0.75% convertibles due 2025 were last seen on Trace data on Sept. 23 at 97.375. The $425 million of YY 1.375% convertibles due 2026 traded last at 91.82 on Sept. 30.

The American Depositary Shares of the Guangzhou, China-based global social media platform were down $2.17, or 3.8% at $54.99.

Meanwhile, Neoen SA of France said it is pricing €200 million of five-year convertible bonds exchangeable into new or existing shares of the company.

The new Oceanes were talked to yield 1.25% to 1.875% with an initial conversion premium of 35% to 42.5%, and they were expected to be priced at par later in the session.

Neoen is a renewable energy company based in Paris.

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