Convertibles firmer; Ctrip, Twitter improve on swap; SanDisk bonds active; Greenbrier eyed

By Rebecca Melvin

New York, April 7 – Convertibles players were back in action Tuesday, and the space firmed up slightly amid focus on names such as Ctrip.com International Ltd., Twitter Inc. and SanDisk Corp.

“Everything was a bit firmer on Europeans returning to their desks following the Easter break and as more buying continues with a lack of new paper in the convertible bond market,” a New York-based convertibles trader said.

“Bonds were up about 0.3 point on swap,” he said.

Ctrip was a notably active name, and its convertibles improved about 0.75 point on swap after Piper Jaffray raised its price target on shares of the internet travel site to $90.00 and boosted its rating to “overweight,” the trader said.

Twitter’s dual convertible bonds traded actively and expanded 0.75 point to a point on swap as shares of the San Francisco-based social media company gained amid renewed takeover speculation. There was a report that the company has hired an advisor after two separate entities expressed interest in the company, but Twitter declined to comment, the trader said.

SanDisk’s two convertible bonds were trading again, in a continuation of the action over the last three or four days. The Milpitas, Calif.-based data storage chip maker has also been the subject of takeover speculation.

Greenbrier Cos. Inc.’s convertibles lifted on an outright basis after the Lake Oswego, Ore.-based railcar company reported quarterly results that beat estimates and raised its full-year guidance again.

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