Dycom improves on swap after earnings; SunEdison surges; Newmont Mining flat to lower

By Rebecca Melvin

New York, Nov. 24 – Dycom Industries Inc. improved on a swap basis in the convertibles market on Tuesday after the Florida-based specialty contracting company reported better-than-expected quarterly results.

The Dycom 0.75% convertibles were seen to have improved about 0.25 point on swap, as the bond’s underlying shares swung from gains to losses and back again following positive results, a New York-based trader said.

“People want to go home for Thanksgiving; they want to take a break,” a trader said, adding that it’s going “to be a rough couple of weeks” in the secondary market due to light liquidity.

Financial markets will be closed on Thursday for Thanksgiving.

Meanwhile SunEdison Inc., the struggling solar technology company, announced a few positive developments that caused its stock to pop 37% on top of a 19% gain on Monday. After all that, shares were still only $4.12 to end the session. But the gains bode well for both the convertibles and equity of the beleaguered company.

Driving the gains was news that the company repaid most of the $410 million margin loan that had contributed to the collapse of its securities and also that it has inked new solar projects in India and with Los Angeles County.

Also on Tuesday, Newmont Mining Corp.’s 1.625% convertibles, which typically trade by appointment only, traded a little weaker on Tuesday, ending the session at 99 after having earlier traded at 99.25.

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