Morning Commentary: Convertibles quiet; oil, gas in focus after OPEC supply news; Greenbrier slides

By Rebecca Melvin

New York, Dec. 1 – U.S. convertibles were mostly quiet early Monday following last week’s Thanksgiving holiday. But oil and gas convertibles were in focus as market players reevaluated where they should be trading in light of OPEC’s decision to keep oil output steady to prevent U.S. competitors from gaining market share.

“Nobody knows were to trade oil and gas names,” a New York-based trader said, adding that market players were focusing on fundamental research and how much tolerance for pain there is at any one issuer and how far underwater they are.

Some of the names in focus were Energy XXI Ltd., Emerald Oil Inc., Goodrich Petroleum Corp., Cobalt International Energy Inc. and BPZ Resources Inc.

Related to the oil market news, rail convertibles were lower in line with dropping shares in expectation that demand for rail delivery of oil may be reduced.

The Greenbrier Cos. Inc.’s 3.5% convertibles due 2018 traded at 141.8, which was down about 40 points as shares plunged 16%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.