Morning Commentary: Convertibles trade quietly ahead of the Fed; Restoration Hardware mixed

By Rebecca Melvin

New York, Dec. 15 – U.S. convertibles were trading quietly early Tuesday with only a few company-specific trades in notable action and without the large moves that hit some high-yield names in the past couple of sessions, a New York-based trader said.

“There was nothing that significant,” he said, referring to sharp losses seen in names like Cemex SAB de CV and Navistar International Corp. on Monday and Friday.

“It’s a pretty quiet day as far as the headlines go,” the trader said.

Given that year-end is around the corner and news on rates is expected Wednesday at the conclusion of the Federal Open Market Committee’s policy meeting, “it’s a formula for a quiet day,” he said.

Restoration Hardware Holdings Inc.’s two 0% convertibles, one due 2019 and the newer one due 2020, traded mixed after the Corte Madera, Calif.-based specialty retailer reported earnings that beat estimates and raised guidance. Shares wavered but were last up nearly 1%.

Restoration’s 2019 convertibles crossed the Trace tape at late morning at 91.562, which was up 1.4 points on an outright basis. The Restoration 2020 bonds traded at 87.9, which was down about 0.7 point, according to Trace.

© 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.