Morning Commentary: Convertibles ‘for sale’ amid weaker broader markets; SunEdison complex droops

By Rebecca Melvin

New York, Aug. 19 – Weaker equity markets and oil prices weighed on convertibles on Wednesday, with many offers on convertible paper moving lower.

Convertibles are “for sale across the board,” a New York-based sellsider said, adding that it was a continuation of a trend that has been ongoing in August and for much of the summer.

SunEdison Inc., which had a positive day on Tuesday on the debut of its $650 million of 6.75% perpetual convertible preferreds, was moving lower.

“SUNE has imploded. The stock is down 6%,” a trader said.

Shares of the St. Peters, Mo.-based solar technology company were off 90 cents at $13.60.

The SunEdison 2% convertibles, or the A tranche, traded down to 116.5 from about 118 last on Tuesday, according to Trace data.

The SunEdison 2.75% convertibles due 2021, or the B tranche, traded last at about 115, which was down from about 118.

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