Tesla convertibles flat after earnings miss; Anthem adds on swap; FireEye contracts

By Rebecca Melvin

New York, Nov. 4 – Earnings news remained a focus in the convertibles secondary market on Wednesday, while the primary market was quiet again – both internationally and in the United States – with no deals yet priced in the U.S. market this week and only one internationally.

Tesla Motors Inc., which has a trio of convertible bonds, reported earnings late Tuesday that pushed its shares 11% higher, and the bonds traded higher on an outright basis but flat on a swap basis.

There was a continuation of activity in AMAG Pharmaceuticals Inc.’s convertibles, which plunged on an outright basis in active trade on Tuesday after the Waltham, Mass.-based specialty pharmaceutical company reported quarterly results that missed estimates. AMAG common shares extended losses Wednesday, trading down another 3%, after dropping 23% on Tuesday.

Elsewhere in health care, Amarin Corp. reported earnings, as did Regeneron Pharmaceuticals Inc. and Array BioPharma Inc. But a notable focus was Anthem Inc., the Indianapolis-based health benefits company, which saw its 2.75% convertibles trade up a bit on a swap basis.

FireEye Inc.’s two convertible bond issues contracted slightly on a swap basis ahead of the security company’s quarterly results, which were posted after the market close and brought the common shares down 15% in after-hours trading action.

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