Morning Commentary: Convertibles quiet; Ctrip.com trades in range; Citrix active

By Rebecca Melvin

New York, April 10 – The convertibles space was quiet at mid-week on Wednesday with one market source pointing to a lull setting in ahead of earnings season.

“The banks, JPMorgan and Goldman Sachs, will kick us off on Friday and then next week a few names will start to report,” a New York-based market sellsider said regarding convertibles issuers.

There were a few Ctrip.com International Ltd. convertible bonds trading in line but activity in those issues was lighter than on Tuesday. On Tuesday word that the online travel services company is planning to price $800 million of new convertibles, possibly as soon as this month, sparked trading.

The Ctrip.com 1% notes due 2020 traded up to 103.2 on Wednesday according to Trace data, which was higher than 102.875 last on Tuesday but within its recent range. Shares were off slightly.

The Ctrip.com 1.25% notes due 2022 were 102.1.

Citrix Systems Inc.’s 0.5% convertible notes, which mature on April 15, 2019, were trading again as outright players continue to convert out of the notes ahead of the maturity. The issue is a large one for the convertibles space, and market players would like to see new issuance bump up to replace it.

The Fort Lauderdale, Fla.-based cloud computing solutions company priced $1.25 billion of the senior notes in 2014.

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