Convertibles weaken amid broad-based sell-off in equities; Twitter, Iconix Brand hold in

By Rebecca Melvin

New York, Jan. 13 – U.S. convertibles weakened on Wednesday after equities turned lower at late morning and slid relentlessly downward to the market close, leaving the major indices in correction territory.

“There is real fear in the markets now, and we have seen a bit of weakness in the on-the-run names,” a New York-based trader.

Those names included Priceline Group Inc. Priceline’s 0.35% convertibles due 2020 traded actively and down about 2.5 points to 111.2 from 113.5. Shares of the Norwalk, Conn.-based online-booking service ended down $50.00, or 4.4% to $1,098.90.

Priceline’s 1% convertibles due 2018 ended down more than 3 points to about 128.32. And the Priceline 0.9% convertibles due 2021 changed hands at 98, which was down about 0.5 point to 0.75 point on the day.

Twitter Inc. saw buyers amid further weakening in the underlying shares of the San Francisco-based social media company. The shares hit another all-time low, ending Wednesday at $18.68, which was down 94 cents, or 5%, on the day. But pricing on Twitter’s two convertible bonds was a little better compared to Friday.

Elsewhere, Iconix Brand Group Inc.’s 2.5% convertible bonds were a little lower on an outright basis but better on swap.

Overall, the focus in convertibles was “pretty mixed,” another trader said. Despite big declines in energy again, convertible energy paper held up better than high-yield straight debt, a New York-based trader noted.

© 2015 Prospect News.
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