Convertibles well bid, add 0.25 point across the board; SunEdison, Micron notes jump

By Rebecca Melvin

New York, Oct. 5 – U.S. convertibles were better bid on Monday as equities rallied.

Amid strength in the equity markets, the overall convertibles space lifted by about 0.25 point on a swap basis, making back some of the weakness from Friday, a New York-based convertibles trader said early Monday.

Many of the more liquid names were better, including Intel Corp., LinkedIn Corp.’s 0.5% convertibles and the SanDisk Corp. 1.5% convertibles. But there were no real themes.

SanDisk’s 1.5% convertibles due 2017 ended the session around 131.8, which was up about a point from Friday, while SanDisk shares were flat to lower, ending the day at $59.47, which was down 11 cents on the day.

The convertibles of both SunEdison Inc. and Chesapeake Energy Corp., which were big drags on the space in August, were up in trade. SunEdison’s multiple convertible issues were up as much as 2 points as shares of the St. Peters, Mo.-based solar technology company popped following the company’s announcement of a proposed series of actions to align its businesses with current and future market opportunities and accelerate cash flow positive operations.

Meanwhile Micron Technology Inc. saw its stock and bonds surge after the Boise, Idaho-based chipmaker reported better-than-expected quarterly results. Micron’s 3% convertibles due 2043 jumped to about 90 from 85.9, which extended a 0.5 point rise on Friday, according to a market source. And Micron shares gained $1.66, or 10%, to $17.57.

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