Intel’s 2.95% convertible sees outright sellers; Proofpoint sees better buyers on earnings

By Rebecca Melvin

New York, Oct. 22 – Semiconductors accounted for a majority of trading in U.S. convertibles on Thursday, with Intel Corp.’s bonds trading actively in addition to SanDisk Corp. and Micron Technology Inc.

NXP Semiconductors NV and Microchip Technology Inc. were also pulled into trade as chipmaker stocks moved up in tandem with the broader markets.

NXP’s 1% convertibles due 2019 traded at 117.6, which was up 2.6 points on the day, according to Trace data.

Microchip’s 1.625% convertibles changed hands up a point to nearly 105.

“The market ripped today,” a New York-based analyst said.

Proofpoint Inc. was also a name in the convertibles market after the Sunnyvale, Calif.-based internet security-service company reported quarterly results that pushed its shares up 12%.

Valuations were mostly steady with better buyers, a third trader said, noting trading action also in Acor Inc., and calling those convertibles higher by about 0.25 point on the day on a swap basis.

The Acor 1.75% convertibles due 2021 traded up to nearly 102, which was up 3.4 points on an outright basis, according to Trace data.

Market players continued to monitor the situation with Valeant Pharmaceuticals International Inc., which was fending off allegations of fraud related to its specialty pharmacies. But the Valeant shares were sharply lower again Thursday as were the shares of Horizon Pharma plc.

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