Convertibles in line on light volume; Liberty/Charter active; Toll Brothers, Dycom eyed

By Rebecca Melvin

New York, Aug. 23 – U.S. convertibles traded in line with stocks on light volume on Tuesday, as the dog days of summer dragged on, market players said.

“The dog days of summer are definitely upon us,” a New York-based trader said.

Liberty Interactive LLC’s 1.75% debentures exchangeable for Charter Communications Inc. stock, which debuted in the convertibles market last Thursday, was among the most actively traded issues of Tuesday’s session. The paper looked to have traded off a bit, changing hands at 102.03, which was down from 103 to 103.5 on Thursday.

Elsewhere, HeartWare International Inc.’s convertibles traded right around par as shares were delisted as expected with the Medtronic plc acquisition of the Framingham, Mass.-based medical device maker announced in June.

Related to earnings news, Toll Brothers Inc. traded in line with the underlying common shares of the Horsham, Pa.-based home builder, which gained 9%.

And Dycom Industries Inc.’s 0.75% convertibles due 2021 traded up 1.6 points to 116.7, according to Trace data. That was against shares that were up 64 cents, or 0.7%, to $91.94 for the session and ahead of earnings expected to be released after the market close.

The Dycom report pushed shares down $4.18, or 4.6%, in after-hours action.

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