Convertibles riding out summer; some profits pocketed in DISH, Liberty/Charter paper

By Rebecca Melvin

New York, Aug. 29 – U.S. convertibles continued to trade quietly on Monday as market players eyed the end of August this week and the restart of more normal market action after the U.S. Labor Day holiday next week.

In general, it was “dead,” with no major theme, a New York-based sellsider said on Monday.

Another trader quipped whether the market was open or not.

Among names that traded, DISH Network Corp.’s 3.375% convertible notes due 2026 and Liberty Interactive LLC’s 1.75% debentures exchangeable for Charter Communications Inc. saw some profit-taking by hedged players, a sellsider said.

The DISH convertibles changed hands at 103.43, which was up a bit on an outright basis but lower on swap, as the DISH common shares gained about $1.00, or 2%, to $49.86 last.

The DISH convertibles have been a commonly traded convertible since the $3 billion deal priced early this month. The Englewood, Colo.-based media company priced the upsized deal at the rich end of price talk.

The new Liberty Interactive/Charter 1.75% convertibles due 2046 traded at 102.6, which was higher by 0.5 point on an outright basis. But Charter’s common shares moved up $1.38, or 0.6%, to $252.31.

Empire State Realty Trust Inc.’s 2.625% convertibles due 2019, which also priced earlier this month, changed hands at 117.3 during the session, according to Trace data.

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