Morning Commentary: Trading muted in quarter-end session; Carbonite remains firm; DISH Network up

By Stephanie N. Rotondo

Seattle, March 31 – Liquidity was subdued in the convertible bond market on Friday, according to one market source.

“It’s pitiful,” he said.

For instance, Carbonite Inc.’s new $125 million issue of 2.5% convertible notes due 2022 – a deal priced early Thursday – barely had any volume in early dealings, a trader said, though it dominated the space on Thursday.

Still, the trader noted that the paper continued to move higher, trading with a 105 handle.

The underlying stock (Nasdaq: CARB) was also better, adding 48 cents, or 2.45%, to $19.88.

The deal came in the middle of price talk. Barclays ran the books.

DISH Network Corp.’s convertibles were somewhat busy, considering the overall lack of activity, the trader said.

The 2.375% convertible notes due 2024 and the 3.375% convertible notes due 2026 were up half a point to a point at mid-morning, though there was no fresh news to act as a catalyst for the gains.

The company’s shares (Nasdaq: DISH) were ticking up as well during the month- and quarter-end session.

Another notable name was Microchip Technology Inc., as its 1.625% convertible notes due 2025 and 2027 were slightly active, but overall unchanged from levels seen Thursday.

The stock (Nasdaq: MCHP) was under pressure, however, though there was no news out to explain why.

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