Morning Commentary: China-related names trade after encouraging data; energy ‘trickles back’

By Rebecca Melvin

New York, April 13 – A few China-related names were pulled into trade in U.S. convertibles early Wednesday on the back of Chinese trade data that was better than expected.

China’s General Administration of Customs showed the country’s dollar-denominated exports jumped 11.5% for March from a year earlier.

Vipshop Holdings Ltd.’s convertibles traded up a little more than a point to 104.875, while shares of the Guangzhou, China-based online discount retailer rose more than 2% to about $14.60, according to Trace data.

China’s Sina Corp.’s 1% convertibles due 2018 traded unchanged at 98.375 with shares of the Shanghai-based online media company up $1.84, or 3.7%, to $51.18; and SouFun Holdings Ltd.’s 2% convertibles due 2018 added 0.375 point to 98 as shares of the Beijing-based real estate internet company edged up 4 cents to $6.00.

But U.S. energy convertibles quieted down somewhat after a dip in crude oil prices following an almost 20% jump in the last week.

“It’s trickling back today,” a New York-based trader said of the energy sector convertibles.

“There was a small pullback in oil prices, but things are still well up from where they were a couple of weeks ago,” he said.

Chesapeake Energy Corp.’s 2.5% convertibles due 2037 were 78 bid – unchanged from Tuesday’s late trades – even though shares were up 14 cents, or 2.3%, to $6.19.

“That’s the bid side; we’ll see where it actually trades,” he said of the Chesapeake level.

Hornbeck Offshore Services Inc.’s convertibles were a little higher though with higher shares. That paper was seen up 0.5 point at 59.5 bid, 60.5 offered. Shares of the Covington, La.-based oilfield services company were up 51 cents, or 5%, at $10.50.

© 2015 Prospect News.
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