Morning Commentary: Convertibles stabilize after early weakness; Tesaro adds; Janus Capital eyed

By Rebecca Melvin

New York, Sept. 26 – Convertibles started Friday’s session a little weaker again following Thursday’s drop amid a slide in high yield and equities. But convertibles have since stabilized, a New York-based trading source said at late morning.

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

The market had followed an early move in high yield and was lagging equities.

One name to the upside was Tesaro Inc.’s 3% convertible bonds, which priced earlier this week. The bonds were called up 0.25 point on a hedged basis, crossing the Trace tape at 100.5. Shares of the Waltham, Mass.-based biopharmaceutical oncology company were up 71 cents, or 2.8%, at $26.01.

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. 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.