Midday Commentary: Convertibles trade quietly after holiday weekend; SanDisk 1.5% active, in line

By Rebecca Melvin

New York, April 21 - The convertibles market was getting off to a slow start early Monday as were the broader markets following the long Easter holiday weekend and as most European markets remained closed on Monday for the Easter holiday.

Financial markets were closed Friday for Good Friday.

"It's a pretty quiet morning," a New York-based trader said, adding there was "nothing really standing out."

SanDisk Corp.'s 1.5% convertible due 2017 was among the most actively traded bonds, according to market sources. They were seen at 169.809 versus an underlying share price of $83.87, a trader said early Monday. He thought that level was roughly in line with where they had been trading.

The SanDisk convertibles and stock rallied on Thursday after the Milpitas, Calif.-based data storage company reported better-than-expected first-quarter earnings.

Advanced Micro Devices Inc.'s 6% convertibles due 2015 were quiet despite a rally in the underlying shares after the Sunnyvale, Calif.-based semiconductor maker reported better-than-expected first-quarter earnings and revenue late Thursday, as well as provided a strong outlook for the current quarter.

The AMD 6% convertibles were not heard to have traded on Monday but were last seen at 101.6.

There aren't many AMD bonds left after the tender, a Connecticut-based trader noted.

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