Morning Commentary: Market quiet pre-holiday, Cypress notes resurface

By Abigail W. Adams

Portland, Me., Nov. 22 – The convertibles market was quiet Wednesday morning with only $60 million on the tape and not much more expected, a market source said, as the focus turned towards the holiday weekend.

Intel Corp.’s sister convertible notes continued to dominate the convertible space but Cypress Semiconductor Corp.’s recent and existing convertible notes saw an uptick in activity.

Intel’s soon-to-be-called 2.95% convertible notes were trading in the 164.5 to 165.87 range in early morning activity as the company’s stock dropped 0.86% to trade at $44.55. Intel’s 3.25% convertible notes due 2039 also dropped a little more than 1 point to trade at 214.817, according to Trace data.

Cypress Semiconductor’s 2% convertible notes due 2023, issued in early November, and 4.5% convertible notes due 2022 saw an uptick in activity on Tuesday which continued Wednesday with early trades.

The company’s 4.5% convertible notes are not usually very active, a market source said. However, they climbed 3 points during active trading on Tuesday to the 142 to 142.5 range. The notes traded at 141.999 early in Wednesday’s session.

Cypress Semiconductor’s 2% convertible notes climbed 2 points on Tuesday to trade in the 107 to 107.75 range. The notes traded at 107.49 early in Wednesday’s session. Cypress stock closed the market Tuesday at $17.33 and was down 0.23% to $17.29 in early trades Wednesday.

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