SanDisk trades ahead of anticipated deal; NuVasive extends gains after strong debut

By Rebecca Melvin

New York, March 14 – The U.S. convertibles market died back after a burst of activity last week when new issuance and higher equity and oil prices sparked activity.

Especially compared to how it went out on Friday, it was a pretty slow day, a New York-based trader said. Equity trading volume levels were lower as well.

Last week, all boats seemed to lift after the European Central Bank announced it was implementing a new, unexpectedly robust round of stimulus measures, including lower interest rates and an expansion of its asset-purchase program. This week, Monday was quiet ahead of meetings of the Federal Reserve, the Bank of England and the Bank of Japan, among others.

Among Monday’s most active issues was the SanDisk Corp. 0.5% convertibles due 2020, which were steady right around the 104 mark, as market players anticipate a deal with Western Digital to be completed soon, a trader said.

The new NuVasive Inc. deal, which dominated trade on Friday, extended gains on Monday, while the older NuVasive bond, much of which is being repurchased by the company with proceeds of a new deal, was a little stronger, trading at 123 early Monday, up from 122.5 on Friday.

Despite lower oil prices, energy was flattish and not actively traded. Cobalt International Energy Inc.’s 3.125% convertibles remained unchanged at 45, and the Cobalt 2.625% convertibles were little changed at 43, despite lower shares. Cobalt shares closed down 2.8%.

© 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.