Tesla Motors, LinkedIn holding in amid volatility; Illumina 0% convertibles slip below par

By Rebecca Melvin

New York, Feb. 3 – Some U.S. convertibles outperformed their underlying shares on Wednesday as volatility continued to mark the broader markets, leaving the U.S. dollar down, crude oil prices sharply higher and equity indices better after intraday losses.

The day’s action was “a continuation of the last six weeks. It’s a nervous market, and there is no conviction,” a New York-based convertibles buysider said.

But there was some positive trading in certain convertibles, which performed as they are meant to perform when stocks move lower.

Tesla Motors Inc.’s convertibles traded lower on an outright basis along with the underlying shares of the Palo Alto, Calif.-based electric car maker, but the convertible bonds hung in well, with the Tesla 1.25% down by less than half of the stock move, the buysider said.

LinkedIn Corp. was another outperformer. Shares of the Mountain View, Calif.-based business-oriented social networking service dropped 6% on Wednesday, after dropping 12% in January. LinkedIn was expected to post earnings on Thursday.

Illumina Inc.’s 0% convertibles were in trade after the San Diego-based developer of genetic research tools reported lower quarterly earnings that missed estimates but higher revenue.

Illumina 0% convertibles due 2019 slipped below par in the early going, changing hands at 99.625, which was down from 102 to 103 on Tuesday.

Illumina shares fell $13.85, or 9%, to $140.81.

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