Vipshop tumbles to near par after revenue warning; Chesapeake Energy slides on swap

By Rebecca Melvin

New York, Nov. 13 – Vipshop Holdings Ltd.’s convertibles tumbled 14% on Friday, becoming the latest in a string of collapses that have bruised the convertibles market in recent days.

The Vipshop 1.5% convertibles fell to 101 from 117 as the bond’s underlying common stock dropped $5.00, or 27%, to $13.60.

The stock and convertibles were crunched after the Guangzhou, China-based online discount retailer cut its third-quarter revenue guidance, citing warmer-than-expected weather in China.

But the action in Vipshop was only the latest mishap for the market. “We seem to have had a blow up a day,” a New York-based convertibles player said about recent sessions.

On Thursday it was Chesapeake Energy Corp., with several of the oil and natural gas company’s convertibles having dropped 3 points to 5 points on swap since Wednesday, the market player said.

Before that it was SunEdison Inc. melting down on Tuesday and Wednesday.

On Friday, the SunEdison complex of convertibles were recouping a point or so of those losses.

SunEdison’s 0.25% convertibles due 2020 traded at 43, which was up from 41.5 on Thursday.

SunEdison’s 2.75% convertibles due 2021 traded at 51.5, which was up a point.

SunEdison’s 3.375% convertibles due 2025 traded at 39.5, which was up about 2 points.

SunEdison’s 2% convertibles due 2018 traded at 54.7, which edged up 0.174 point, according to Trace data.

SunEdison’s stock closed up 39 cents, or 8.6%, to $4.93.

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