Iconix Brand convertible bonds steady post-earnings; Whiting Petroleum declines with oil

By Stephanie N. Rotondo

Seattle, March 29 – Iconix Brand Group Inc. dominated the convertible bond market on Tuesday, though overall liquidity remained thin.

“It’s very quiet, as usual,” one trader said. “There are a lot of kids out of school, so a lot of people aren’t even at work.”

As for Iconix’s action, it was spurred by the company’s earnings release on Monday. The results came in below expectations.

Iconix’s 1.5% convertible notes due 2018 were “active on the back of earnings,” a trader said Tuesday.

However, he deemed the notes “pretty much unchanged” in a 64.25 to 65.5 context. The equity was meantime off 74 cents, or 9.09%, at $7.40.

Meanwhile, Whiting Petroleum Corp.’s 1.25% convertible notes due 2020 were seen trading at 56.5. That was a loss of 2 points on the day.

“They are just following oil up and down, that’s all,” a trader said.

Surprisingly, Whiting’s equity was up 12 cents, or 1.63%, to $7.46.

For its part, domestic crude oil traded down 2.44% to $38.43 a barrel. That was, however, better than the earlier losses. The modest rebound was attributed in part to remarks made by Janet Yellen, chairman of the Federal Reserve, in which she said the central bank would have to be cautious about future interest rate hikes.

© 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.