Morning Commentary: Illumina’s 0% convertibles slip; convertibles quiet amid equity sell-off

By Rebecca Melvin

New York, Feb. 3 – U.S. convertibles remained lightly traded early Wednesday as selling resumed in U.S. equities, driving indices downward following a positive start but after broad-based selling on Tuesday.

Illumina Inc.’s 0% convertibles were in trade after the San Diego-based developer of genetic research tools reported lower quarterly earnings that missed estimates but higher revenue.

Illumina’s 0% convertibles due 2019 slipped below par in the early going, changing hands at 99.625, which was down from 102 to 103 on Tuesday.

Illumina’s 0.5% convertibles due 2021 were quiet, having traded last at 108.5, and Illumina’s 0.25% convertibles, which mature next month, were last seen at about double par.

Illumina shares fell $13.85, or 9%, to $140.81.

Also seeing some trading action was Nvidia Corp.’s 1% convertible due 2018, which traded last at 143.25. Nvidia shares were down 35 cents, or 1.3%, at $27.71 at late morning.

The shares of a couple of other big convertibles issuers, Tesla Motors Inc. and Yahoo! Inc., were under pressure early Wednesday. But there wasn’t action reported in the convertibles of those companies.

Two New York-based sellsiders said that their desks had been quiet.

© 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.