Convertibles improve on light volume; Proofpoint expands on swap; Southwestern Energy up

By Rebecca Melvin

New York, April 22 – U.S. convertibles traded lightly on Friday amid a crop of mixed earnings reports, but convertibles paper was mostly better and definitely better on the week, market sources said.

Proofpoint Inc., the Sunnyvale, Calif.-based internet security services vendor, traded up on both an outright and a dollar-neutral basis, after posting stellar quarterly results, in which earnings and revenue beat estimates. It also guided current quarter revenue higher as well as raised full-year earnings and revenue estimates.

Proofpoint was about 0.625 point better on swap, a New York-based trader said.

Volume was “pretty light,” he added. Some names associated with earnings reports didn’t trade, but in general, everything was higher for the week, he said.

Southwestern Energy Co. traded better after earnings. Its mandatory convertible preferred shares were up 15 to 20 cents on swap after quarterly earnings beat expectations, the trader said.

Unisys Corp.’s 5.5% convertibles due 2021, which priced last month, were indicated up by about 5 points on an outright basis after the Blue Bell, Pa.-based information technology company reported a narrower loss for the quarter that was better than expected. Revenue for its first quarter was 8% lower compared to the year-earlier period, but also better than expected.

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