Vipshop trades up in line with shares after earnings; Liberty Interactive/Charter to price

By Rebecca Melvin

New York, Aug. 16 – Market activity in U.S. convertibles was generally light and typical of a mid-summer, August day, but there were a few things trading actively and in line with moves of the common shares underlying the bonds, a New York-based trader said.

Vipshop Holdings Ltd.’s 1.5% convertible, which is part of the China internet sector that is not everyone’s cup of tea, was the top volume name in trade, according to Trace data, and those bonds were said to have moved up in line with the initial move in the underlying American Depositary Shares, which means the bonds were unchanged on a dollar-neutral, or swap, basis compared to Monday. The move was spurred by the Guangzhou, China-based online discount retailer’s better-than-expected quarterly earnings report.

The Vipshop bonds were trading around 108.5 to 109.5, which was up on an outright basis from around 107.5 on Monday.

Higher sales pushed Vipshop revenue up 49% year over year, and that propelled better earnings.

After the market close, Liberty Interactive LLC, a subsidiary of Liberty Media Corp., launched a deal to sell senior debentures exchangeable for Charter Communications Inc. common stock in a private offering, according to a company news release. Price talk and timing was not immediately available.

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