Hybird Vigor: Vol 2 Issue 11 "Green Beer and Cabbage"

Dear Friends,

All things considered, last week was pretty quiet in convertible-land. After a bit of a bang to start the week, with Alcoa’s takeout of longtime convertible plodder RTI, there wasn’t that much to shock the house.  There was some noise in index-land, with the old Molina bonds and a couple of Qihoo issues experiencing departures for very different reasons in favor of SunEdison 2.375% and the Microchip 1.625% hypers. So we’re told.

Perhaps the market needed a little calm in front of St. Patrick’s week. Last year was an eye opener for me. I had a meeting in the GM building, at the southeast corner of Central Park, on St. Patrick’s Day. In all my years of working in New York, I’d never been on the street during the parade.  Let’s just say that if it never happens again, it will be too soon.  I don’t want to begrudge the revelers their fun—or their projectile expulsions. I just don’t want to be that close to it again.

Speaking of hurling, we spend a few minutes this week on the Illumina convertibles. For some of us, looking at those bonds might be a more effective emetic than a case of Schaeffer’s. On the brighter note, we make another case for Tesla’s newer convertibles.  But please don’t drink and drive, even if your car doesn’t generate any nasty exhaust fumes.  For that matter, please don’t drink and trade.  You might just find yourself buying Illumina.

Bill

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