Fluidigm down outright, expands on swap after earnings; Nvidia in line on swap; PHH active

By Rebecca Melvin

New York, May 8 – U.S. convertibles ended the week modestly firmer Friday after the April jobs report pushed Treasury bond rates lower and equities higher.

Fluidigm Corp.’s convertibles fell on an outright basis but were better on swap after the South San Francisco-based genomics and DNA research company reported disappointing earnings.

The bonds fell from just over par to about 89 outright, according to market sources. Shares fell 28% to $26.95.

Nvidia Corp.’s 1% convertibles due 2018 traded down on an outright basis, or 4 points to 118.65, but were seen holding in line on a swap basis after the Santa Clara, Calif.-based graphics processor company posted earnings that met expectations but forecasted current-quarter results below consensus.

Nvidia shares sank $1.31, or 6%, to $21.18 by late morning and settled down 7.4%.

PHH Corp.’s 6% convertibles due 2017 were the most actively traded issue in the space in early trading, and the paper added another couple of points to 219, a day after the Mt. Laurel, N.J.-based mortgage and fleet management services company launched an exchange offer for the $245 million issue.

“PHH flush is the most actively traded,” a New York-based trader said.

Gevo Inc. was getting a look from market players as the stock surged on news that the company has inked a contract with Alaska Air Group Inc. under which the carrier will purchase Gevo’s renewable jet fuel.

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