Morning Commentary: Convertible bond market trading remains low; Newmont busy but unchanged

By Stephanie N. Rotondo

Seattle, April 18 – Newmont Mining Corp.’s 1.625% convertible notes coming due in July were on the active side early Tuesday, though overall trading continued to be lackluster.

A market source saw Newmont’s convertibles at 100.3, which was unchanged day over day.

The underlying stock (NYSE: NEM), however, was down 33 cents at $34.26.

There was no fresh news out on the company, though earnings are expected in the coming weeks.

Meanwhile, DISH Network Corp.’s 3.375% convertible notes due 2026 remained in focus, as the market continued to ponder what DISH management had in store for the company.

The convertibles were slipping again, falling 1.25 points to a 114 handle. The stock (Nasdaq: DISH) was also under pressure again, losing 82 cents, or 1.39%, to $57.97.

Weakness invaded the name on Monday when it was announced that the company had bought up $6.2 billion in wireless spectrum at a government auction. However, DISH does not currently use such airwaves, leading investors to believe that a merger could be on the horizon.

In the chip space, ON Semiconductor Corp.’s 1.625% convertible notes due 2023 were hovering around 100.75 against a stock price of $14.20.

The company’s shares had dropped 6% in one session last week, after Credit Suisse downgraded the stock to “underperform.”

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