Convertibles mostly softer; Brocade down with lower shares after earnings; Yandex higher

By Rebecca Melvin

New York, Feb. 20 – Convertibles remained mostly softer in thin trade on Friday as has been the case for much of the holiday-shortened week amid a lack of catalysts and little issuance.

Financial markets were closed on Monday in observance of Presidents Day.

“This is the quietest day of one of the quietest weeks,” a New York-based trader said. “Things are generally softer for no apparent reason. It’s just a general malaise in the market.”

On Friday, Brocade Communications Systems Inc. shed some weight after the San Jose, Calif.-based storage area networking company reported earnings that sent its shares lower by 4%.

The Brocade 1.375% convertible due 2020, which priced in January, traded down 1.857 points to 104.92, according to Trace data. Shares were down 5% at $11.97 at that time.

The selling came despite earnings that beat estimates.

Microchip Technology Inc.’s 1.625% convertibles due 2025, of which $1.5 billion priced earlier this month, traded at 104, which was off about 0.15 point on the day. Shares of the Chandler, Ariz., chip maker were up about 8 cents versus that level.

Yandex NV’s 1.125% convertibles due 2018 continued to look stronger after a midweek earnings report that cheered investors initially but left shares up only a little bit for the week.

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