Morning Commentary: Ctrip.com jumps outright, expands on swap; Vipshop lower outright; Cowen prices

By Rebecca Melvin

New York, May 14 – Ctrip.com International Ltd.’s convertibles jumped on an outright basis and expanded on swap in active trade on Thursday after the Shanghai-based internet travel site reported earnings that beat estimates and guided for strong current-quarter revenue growth.

Ctrip’s 1.25% convertibles due 2018 jumped to 119.5, according to Trace data, with the underlying shares around $74.65.

The Ctrip bonds expanded about a point on a dollar-neutral, or hedged, basis even as the company’s shares surged 14%, a New York-based trader said.

Other Chinese internet names were also in trade. Vipshop Holdings Ltd.’s 1.5% convertible notes due 2019 were lower with shares – changing hands at around 140 – after the China-based online discount retailer reported solid earnings but guided below expectations for the current quarter.

Meanwhile, Cowen Group Inc. priced its $105 million of cumulative perpetual convertible preferred shares at the midpoint of price talk for a 5.625% dividend and 17.5% premium. The new paper was not heard in trade.

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