Morning Commentary: Iconix offered down; Whiting in the upper 60s; volatility marks start to 2016

By Rebecca Melvin

New York, Jan. 4 – Convertibles trading was light early Monday to begin 2016 amid outsized volatility in the broader markets and sharply lower equities. The market moves came on the heels of a big sell-off in stocks in Asia and amid concerns over the geopolitical situation in the Middle East after Saudi Arabia broke off diplomatic relations with Iran.

Iconix Brand Group Inc.’s 2.5% convertibles due in June were offered down at 88, a New York-based convertibles trader. The Iconix bond was last at 89.5 to 90 on Dec. 31, and it traded in the low 90s in mid-December.

Shares of the New-York-based brand management company were sliding lower in trade and were last down 42 cents, or 6%, at $6.41.

Also trading was Whiting Petroleum Corp.’s 1.75% convertibles, which changed hands at 68, which was down from 68.5 to 69 last as shares of the Denver-based energy company turned down about 3%.

Oil prices were volatile and were last trading higher. West Texas intermediate crude for February delivery edged up 2% to $37.82 per barrel.

The S&P 500 stock index was last down 51 points, or 2.5%, to 1,992.91, the Dow Jones industrial average had fallen 443 points, or 2.5%, to 16,981 and the Nasdaq Composite index was down 152 points, or 3%, 4,854.4.

The losses were on top of a negative end to 2015 for the S&P and Dow indices, both closing out the year down about 1%. But the Nasdaq was positive for 2015 despite a drop on the final day of trading.

China’s stock indices plunged about 7% overnight after disappointing weekly manufacturing data. Saudi Arabia severed diplomatic relations with Iran after Iranian protests over executions by the Saudis.

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