Non-energy-related names lower; energy marginally weaker as oil rout persists; Fiat at 102

By Rebecca Melvin

New York, Dec. 12 – Many non-energy-related convertibles weakened on Friday as energy convertibles traded marginally lower, extending losses that have put a damper on the overall U.S. convertibles market for the past two weeks.

Oil prices continued their downward spiral and equities tumbled. West Texas Intermediate crude oil for January delivery fell another $2.42 to $57.53 a barrel after the International Energy Agency cut its forecast for global oil demand growth yet again in its monthly oil report.

The rout extended beyond names like Cobalt International Energy Inc. to include many non-energy related, at-the-money names, including Blucora Inc., Tesaro Inc. and Ctrip.com International Ltd.

“There’s a buyers’ strike today for paper,” a New York-based trader said.

He said the drag was widespread and many at-the-money names were down 0.5 point.

“The market opened weaker, and the tone was set then,” he said.

Meanwhile, Cobalt’s 2.625% convertibles extended losses, trading down to 57.50 from about 59, according to Trace data on Friday. Shares of the Houston-based oil and gas E&P company added 19 cents to $7.82, however.

Cobalt priced $1.2 billion of the 2.625% convertibles a year ago at a discount to par of 99.25.

Elsewhere, Fiat Chrysler Automobiles NV’s mandatory convertible was trading at 102 Friday afternoon with the underlying shares of the Italian automaker up more than 2% at $11.44.

The Fiat mandatory debuted in the market on Thursday and was said to have contracted by about a point that day.

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