Morning Commentary: Convertibles quiet as equities trade up; Tesla 2022 bonds improve

By Rebecca Melvin

New York, Sept. 20 – U.S. convertibles seemed to be quiet early Thursday as stocks moved up and the Dow Jones industrial average and S&P 500 stock index surged to new intraday highs.

The solid footing of the U.S. economy has caused investors to throw off trade concerns and focus on strong corporate profits this week.

One market source said there wasn’t much to watch in the convert space on Thursday.

There was a trade higher on Tesla Inc.’s 2022 convertibles at 111 even though the underlying stock was down almost 1%.

Splunk Inc. shares were also under pressure early Thursday after the software company priced $1.85 billion of convertibles in two tranches late Wednesday.

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