Morning Commentary: Cobalt, Whiting Petroleum edge up after previously lagging the market

By Rebecca Melvin

New York, March 18 – The focus in U.S. convertibles early Friday was primarily on some of the beaten down energy names, which have borne the brunt of market volatility in recent months.

Cobalt International Energy Inc.’s two convertible bonds were trading actively and edged up despite a decline in the company’s stock and in contrast to the trend in place at the beginning of the week.

Cobalt’s 3.125% convertibles due 2024 moved up 0.25 point to 45, and Cobalt’s 2.625% convertibles due 2019 were at 53.25, also up 0.25 point.

Whiting Petroleum Corp.’s 1.25% convertibles due 2020 jumped about 5 points to nearly 66 in early trade.

Whiting announced that it entered into an exchange agreement which will see it swap $429.7 million of unsecured notes for the same amount of new convertibles.

But Cobalt shares were down 8 cents, or 2%, at $3.33 at late morning and Whiting shares were off 46 cents, or 5%, at $8.64.

In the equity markets, the Dow Jones industrial average, which was down 10% a month ago in its worst ever start to the year, turned positive on Thursday, and the S&P 500 stock index crossed over into positive territory on Friday. The Nasdaq composite stock index is still down for the year.

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