Convertibles muted by Yom Kippur holiday; high-grade names in focus; Illumina drops

By Rebecca Melvin

New York, Sept. 23 – Wednesday’s trading activity in U.S. convertibles was muted by the Yom Kippur holiday, and about the only notable aspect of trading was the fact that there were some sellers in a few investment-grade names, market players said.

IG sellers marked a switch from earlier in the week when there were buyers of IG-quality names amid a flight-to-quality trade.

Otherwise, “there’s nothing going on,” a New York-based trader said of Wednesday’s session. “It’s been the quietest few days in a while.”

A bulk of the action as of mid-morning was centered on “higher-grade stuff,” such as LAM Research Corp., Illumina Inc. and Tesla Motors Inc., a second New York-based trader said.

But even there, he said the moves in that paper were “trendless” given the low volume.

Illumina’s 0.5% convertible notes due 2021 were better around midday at 121 versus previous levels around 119. But they printed last with a 116 handle, according to Trace data.

The common shares of Illumina, the San Diego-based developer of genetic research tools, closed at the lows at $189.93, which was down $3.16, or 1.6%. Consequently, the Illumina convertibles printed last at 116.2, according to Trace data.

LAM’s common shares ended down $1.95, or 3%, at $63.69.

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