Convertibles activity declines ahead of holiday; Micron ticking higher; Whiting paper up

By Stephanie N. Rotondo

Seattle, June 28 – The convertible bond market was subdued on Tuesday, with one trader opining that “it’s only going to get worse.”

He attributed the weak liquidity to it being a pre-holiday week, as Independence Day is right around the corner. The markets’ recent volatility and uncertainty surrounding the Brexit news was likely also playing a role.

The typical go-go names like Tesla Motors Inc. and Illumina Inc. were trading on the active side. Tesla’s 1.25% convertible notes due 2021 added about a point, moving up to 82.

The equity underlying the bonds was also up, rising $3.24, or 1.63%, to $201.79.

Illumina’s convertibles were only slightly better on the day, however, and its stock was trending lower. The 0.5% convertible notes due 2021 were pegged at just north of 99. The stock fell 47 cents to $135.01.

Micron Technology Inc.’s paper was trading up, albeit inactively, according to a market source. The 3% convertible notes due 2043 were seen straddling 74, which was up from trades near 73.5.

Meanwhile, Whiting Petroleum Corp.’s senior management said that the company’s liquidity was “very strong” at the JPMorgan Energy Equity Conference on Tuesday in New York.

The comments gave a boost to the equity as well as the convertible bonds.

© 2015 Prospect News.
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