E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 9/26/2014 in the Prospect News PIPE Daily.

Convertibles stabilize after early weakness; Janus Capital busy; Micron active on earnings

By Rebecca Melvin

New York, Sept. 26 – Convertibles opened a little weaker but found their footing and stabilized by midday on Friday. The convertibles market had dropped Thursday amid a slide in high yield and equities.

Convertibles followed the lead of high yield again early on Friday, lagging equities, but recovered, a New York-based trader said.

Volumes were light, so it was difficult to “make much sense of it,” the trader said. “But it seems to have stabilized.”

SolarCity Corp.’s new 1.625% convertibles recouped about 0.5 point on a dollar-neutral basis after dropping a point on their debut Thursday after the San Mateo, Calif.-based clean energy company priced $500 million of the five-year senior notes at the cheap end of talked terms.

Micron Technology Inc. was a focus of trade after the Boise, Idaho-based chipmaker reported better-than-expected revenue that rose 6% and guided higher on revenue for the current quarter. Micron shares surged 6.7%.

A volume name was Janus Capital Group Inc. following news that Bill Gross is leaving Pacific Investment Management Co., the fund he co-founded and of which he was chief investment officer, to join Janus.

Janus shares surged 31% to $14.60, and the Janus 0.75% convertibles changed hands at 143.44, according to Trace data. The convertibles were last about 128 or 129. In June, the Denver-based asset management company’s 0.75% convertibles traded at 126.35 with shares at $12.26.


© 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.