Morning Commentary: Ares Capital trades actively, in line; SanDisk lower outright after downgrade

By Rebecca Melvin

New York, June 10 – A couple of Ares Capital Corp. convertible issues were in trade early Tuesday and were little changed to slightly lower in line with the underlying shares of the New York-based business development company.

Ares’ 5.75% convertibles due 2016 were the more actively traded bonds, but both the Ares 5.75% convertibles and the Ares 4.875% convertibles due 2017 were seen changing hands at about 107 and change, according to Trace data.

Elsewhere, many names in quiet trade in U.S. convertibles early Tuesday were higher quality, more liquid issues such as Intel Corp. Intel shares were up by more than 1% early Tuesday.

Also seen in trade was SanDisk Corp. after Summit Research downgraded its shares to “hold” from “buy” and lowered its price target to $87.00.

SanDisk’s 1.5% convertibles due 2017 were seen trading down 4.5 points to about 189. It was not possible to get an early level on SanDisk’s newer 0.5% convertibles due 2020, which is a $1 billion-plus issue that priced last October.

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