Convertibles quiet: Yandex lower on swap; CETV slips in early going; EZCorp down outright

By Rebecca Melvin

New York, July 21 – A pair of convertibles with ties to the region where nervous attention is focused on the downed Malaysian Airlines plane near the Ukraine-Russia border traded lower early Monday.

Yandex NV’s convertibles fell on an outright basis and were said to be lower by a point on a dollar-neutral, or hedged, basis, as shares of the Dutch-based internet company for Russia and internationally extended a slump since Thursday when the plane went down.

Central European Media Enterprises Ltd.’s convertibles were also seen in trade and were lower as shares of the central and eastern European TV broadcaster were also weaker again, having dropped sharply on Thursday.

But later, U.S. convertibles traded quietly, and Monday’s session overall was said to be a snoozer, market players said.

The CBOE Volatility index had also spiked up to 13.60 at midmorning before tapering down to 12.47 by the market close.

“You can follow the VIX to follow credit. It’s hard to keep this market down; no one seems spooked right now,” a convertibles sellsider said.

Geopolitical concerns are also focused on the Hamas-Israeli conflict in the Gaza strip, where violent fighting persisted through the weekend.

Meanwhile, EZCorp Inc.’s convertibles were trading actively and down sharply on an outright basis along with a slide in the underlying shares of the Austin, Texas-based pawn store operator.

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