Morning Commentary: Yahoo convertibles move lower outright, on hedge; Depomed adds

By Rebecca Melvin

New York, Sept. 9 – Yahoo! Inc.’s 0% convertibles due 2018 moved lower on both an outright and dollar-neutral, or hedged, basis early Tuesday as shares slid amid headlines regarding the initial public offering of Alibaba Group, of which Yahoo owns a 22.5% stake.

The Yahoo convertibles traded at 105.375 with the underlying shares at $41.81.

That was down on a dollar-neutral basis by about 0.375 point, a New York-based trader said.

“Yahoo weaker again as guys sell the news,” the trader said.

Alibaba, the Chinese e-commerce giant, started its global roadshow to raise more than $21 billion on Monday.

Elsewhere, Depomed Inc.’s 2.5% convertibles, which debuted in the market last Thursday, traded up about 0.375 point on an outright basis to 102.125, with the underlying shares of the Newark, Calif.-based specialty pharmaceutical company slightly lower.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.