Newer convertibles, balanced names soften; AMD down; Pandora unchanged to better on swap

By Rebecca Melvin

New York, Sept. 13 – The U.S. convertibles market softened on Tuesday, with several of the newer issues that priced last week and in August trading lower. Selling was seen in certain balanced convertibles as market volatility increased and equities declined.

Advanced Micro Devices Inc.’s 2.125% convertibles were lower on an outright basis, and contracted about 0.25 point on a dollar-neutral, or hedged, basis as they remained in trade for a third straight day after the $700 million issue debuted in the market on Friday, a New York-based trader said.

The AMD bonds slipped 1.5 points to 2 points to a 98 handle as the price of the common stock of the Sunnyvale, Calif.-based chip maker that underlies the bond fell more than 3%.

DISH Network Corp.’s $3 billion convertibles deal that priced in August also traded down about 0.25 point, while Ctrip.com International Ltd.’s $900 million of 1.25% convertibles due 2022 that priced last week dropped about 0.5 point on swap, the trader said.

“Today a few recent issues were softer and select outright, balanced names were better for sale,” the trader said.

Meanwhile, Pandora Media Inc.’s convertibles were seen in line or a touch stronger on a swap basis as shares of the Oakland, Calif.-based internet radio service moved lower by about 1.3% to close at $14.10 each.

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