Convertibles buyers step in to select names; supply remains tight; Navistar 4.5s gain

By Rebecca Melvin

New York, Oct. 5 – Buyers stepped in to select names in the convertibles market on Thursday with particular demand once again for Tesla Inc. and Teva Pharmaceutical Industries Ltd. – those shares dropped another 2.5% to $15.68 – and J2 Global Inc., a market source said.

Navistar International Corp.’s 4.5% convertibles were also active early Thursday as the underlying stock of the Lisle, Ill.-based heavy-duty truck maker fluctuated modestly with stocks overall pushing decisively higher.

The Navistar 4.5% convertible notes due 2018 were at about 104.8 on Thursday, up from 104.6 late Wednesday. On Wednesday the notes rose 1.375 points.

Navistar’s 4.75% notes due 2019 were not trading as actively, but there were prints at 109.85 to 110.25, which was within the previous range.

Navistar’s shares were up 30 cents at $44.42 last.

“There was a lot of buying with no explanation. There was buying for the index,” a New York-based trader said.

Teva’s 7% mandatory convertible preferreds due 2018 (OTCBB: TEVVF) fell $7.06, or 2%, to $315.00 but performed better than the common shares.

Teva’s 0.25% convertibles due 2026 and Tesla’s 1.25% convertible notes due 2021, known as the B tranche were little changed on the say, and the Tesla SolarCity 1.625% convertibles due 2019 were up at 96.93 last from 94.9 at the close on Wednesday.

Meanwhile the lack of supply with no new issuance launched or priced this past week was making market conditions tough, the trader said.

“There is no clear direction, and it’s tough to trade,” the trader said.

Market focus shifted to economic data. On Thursday U.S. Labor Department data showed weekly unemployment claims fell by 16,000 to 260,000 claims last week, as economic activity showed signs of returning to normal following recent hurricane-related disruptions.

On Friday, the Labor Department will release its widely watched monthly non-farm payrolls report. The Department warned last week that the hurricanes will likely affect September’s employment figures.

Mentioned in this article:

Navistar International Corp. NYSE: NAV

J2 Global Inc. Nasdaq: JCOM

Tesla Inc. Nasdaq: TSLA

Teva Pharmaceutical Industries Ltd. NYSE: TEVA

© 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.