Morning Commentary: Convertibles trade quietly amid trendless stocks; Medicines a bit lower

By Rebecca Melvin

New York, July 19 – The convertible bond market was trading quietly on Tuesday amid trendless stock markets that have paused following the post-Brexit sell-off and subsequent rebound.

There were no U.S. deal launches on Tuesday.

“There were a lot of different trades across the board, but nothing of note,” a New York-based trader said.

Medicines Co.’s 2.5% convertibles due 2022 traded down a bit in line with shares to 121.25 from 122 to 123 on Monday. Shares of the Parsippany, N.J.-based health care company were down 51 cents, or 1.45%, to $34.59.

The new Medicines 2.75% convertibles due 2023, of which $402 million priced in June, didn’t appear to have traded. That paper traded on Monday at 99 with the shares a little higher, the trader said.

Traders have begun to turn their focus to second-quarter company results. But on Tuesday there were no earnings out that were meaningful for convertibles traders. But Wednesday’s earnings lineup, including Citrix Systems Inc. and Iconix Brand Group Inc., may generate some interesting market action, the trader said.

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