Midday Commentary: Convertibles quiet as selling hits stocks; Genco steady just under par

By Rebecca Melvin

New York, April 7 - Convertibles were mostly quiet early Monday with equity indices lower by about 0.5% each following a sell-off on Friday that left the Nasdaq stock market down 2.6%.

Genco Shipping & Trading Ltd.'s 5% convertibles due 2015, which shot up more than 12 points in active trade on Friday, changed hands at 99.5 again on Monday in follow through after the New York-based drybulk shipping company reached a restructuring agreement with most of its lenders that will pave the way to a Chapter 11 bankruptcy reorganization.

MannKind Corp.'s convertibles changed hands and were down as the underlying shares of the Valencia, Calif.-based biopharmaceutical company slid about 10% following news that the Food and Drug Administration had extended its review of the company's Afrezza drug.

The review was extended to July 15. Last week an FDA panel backed the company's inhalable Afrezza diabetes drug.

MannKind's 5.75% convertibles due 2015 traded at 114, which was down from nearly 119 last, according to Trace data.

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