Morning Commentary: Convertibles trade quietly; Priceline flat; Cubist active with shares higher

By Rebecca Melvin

New York, Aug. 21 – U.S. convertibles began the session Thursday on a quiet note with top traders on the Trace tape representing a continuation of general trading patterns this week: Priceline Group Inc. and Illumina Inc. were the best traders.

Priceline’s $1 billion of convertibles, which priced earlier this month, were changing hands at near the unchanged mark around 98.5. Priceline shares were fractionally lower.

“They look pretty flat; they are still trading below the reoffer price,” a New York-based trader said of Priceline.

Shares of Cubist Pharmaceuticals Inc. were higher in early trading, and those bonds were in focus. The Cubist 1.8875% convertibles due 2020 changed hands at 110.965, which was up 0.5 point, according to Trace data. And the Cubist 2.5% convertibles due 2017 traded at 230.75.

Shares of the Lexington, Mass.-based biopharmaceutical company were up 94 cents, or 1.4%, at $65.73.

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