Convertibles better bid; high-grade names active, in line; Herbalife adds as shares surge

By Rebecca Melvin

New York, July 22 – U.S. convertibles were better bid on Tuesday with a wide spectrum of paper in trade including a lot of investment-grade names.

Convertibles followed mostly higher equities, as well as issues of companies reporting earnings and names in the news like Herbalife Ltd., which saw its stock price surge more than 25%.

“There was a bid in the market, which was good to see. Things have been leaking premium for a long time,” a convertibles trader said of the convertibles market in general.

Among high-grade names, recently priced Macquarie Infrastructure Co. LLC’s 2.875% convertibles were the No. 1 trader, a New York-based sellsider said. “Guys can’t seem to get enough.”

Herbalife’s 2% convertibles due 2019 traded actively and edged higher on an outright basis to about the 90 mark with shares of the company surging despite a three-hour presentation made by hedge fund manager Bill Ackman against the Cayman Islands-based nutrition company.

Elsewhere, Teleflex Inc.’s 3.875% convertibles due 2017 traded in line as shares of the Pennsylvania-based medical device maker added 0.8%.

In earnings news, Electronic Arts Inc. posted better-than-expected quarterly revenue and profit in its report after the market close, citing strong sales and cost control.

The Electronic Arts’0.75% convertibles due 2016 traded down nearly 1 point on an outright basis to 131.2 in the early going, according to Trace data.

© 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.