Morning Commentary: Convertibles steady in post-holiday trading; SINA paper follows market trend

By Stephanie N. Rotondo

Seattle, Nov. 28 – The convertible bond market was treading water on the first trading day back from the long holiday weekend.

SINA Corp.’s 1% convertible notes due 2018 were about unchanged, for instance, trading around 100.125. The stock (Nasdaq: SINA) has been trending upward since last Tuesday, when the Chinese online media company reported better-than-expected third-quarter results.

The equity continued that trend early Monday, rising $2.10, or 2.71%, to $79.58.

Microchip Technology Inc.’s 1.625% convertible notes due 2025 were meantime seen half a point higher at 132.375 against a stock price of $66.44.

The underlying shares (Nasdaq: MCHP) were also slightly firm in mid-morning trades.

Typical on-the-run names were also being eyed. Priceline Group Inc.’s 0.9% convertible notes due 2021 were steady, trading with a 108 handle, while Tesla Motors Inc.’s 4% convertible notes due 2019 waned about 1.5 points outright to around 93.

Both names saw their equities trading higher, with Priceline (Nasdaq: PCLN) gaining $3.32 to $1,525.00 and Tesla (Nasdaq: TSLA) adding $1.33 to $197.98.

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