Atlas Air flies higher in heavy volume; Tesla Motors lower outright, mixed on swap

By Rebecca Melvin

New York, May 5 – Convertibles were mixed on Thursday in trading action mostly spurred by earnings reports. Atlas Air Worldwide Holdings Inc.’s 2.25% convertibles due 2022 spiked in heavy volume after the Purchase, N.Y.-based outsourced aircraft and aviation services company posted better-than-expected earnings ahead of the market open and announced a pact to provide support for Amazon e-commerce deliveries.

Atlas Air was the most actively traded convertible bond of the day, according to Trace data. By 11:30 a.m. ET, some $43 million of bonds had changed hands, and the paper gained more than 15 points, ending the session at 98.875 versus shares that were up by $10.34, or 27%, to $48.66.

Tesla Motors Inc.’s convertibles were lower outright but mixed on a dollar-neutral, or swap, basis as shares moved from gains to losses after the electric car maker posted its quarterly results and production forecast.

The Tesla B convertibles, which gained the most in the sessions before the earnings report, were the hardest hit, contracting about 0.5 point on swap, a New York-based trader said.

Chesapeake Energy Corp.’s convertibles were higher by 2 to 3 points after the Oklahoma City-based energy company posted earnings and announced $471 million in asset sales on Thursday.

Monster Worldwide Inc.’s 3.5% convertibles due 2019 traded down about 4 points to 87 as shares fell 9.8% to $2.76.

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