Convertibles little changed; LinkedIn trades in line; tech stays in focus; solar shares up

By Rebecca Melvin

New York, Feb. 2 – Convertibles were mostly flat, or in line with their underlying shares, in quiet trading on Monday, with some follow-through action in a few of the larger, better-quality technology names that were in focus last week, sources said.

LinkedIn Corp.’s convertibles were slightly lower on an outright basis but in line on a hedged basis. Shares were weak in the early going but rallied back into the close along with the broader equity markets. LinkedIn shares ended 0.1% lower on the day.

Last week, outright players were looking to buy quasi, investment-grade technology paper, including that of LinkedIn, Yahoo! Inc., Red Hat Inc. and SanDisk Corp., among others, a New York-based trader said.

On Monday, Yahoo! was trading as well as LinkedIn, but the overall convertibles market was mostly quiet, sources said.

Rough winter weather may have dampened some market participation, but the convertibles market’s hushed tone was not out of the ordinary for a Monday, several sources said.

Elsewhere, a handful of solar shares were up strongly on the day, SunPower Corp. shares gained 7% to $25.76. But those convertibles were not heard in trade.

Also higher was SolarCity Corp. Shares of the San Mateo, Calif.-based provider of solar energy systems including residential rooftop systems jumped $4.11, or 8.5%, to $52.72.

There were outright buyers of the SolarCity 1.625% convertibles, which changed hands at 88, according to market sources.

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