Morning Commentary: Convertibles about 0.25 point better across the board; SunEdison jumps

By Rebecca Melvin

New York, Oct. 5 – U.S. convertibles were better bid early Monday as equities started the week on a better note.

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.

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 however.

LinkedIn’s 0.5% convertibles due 2019 were in the 99 ballpark, which was up a point or so on an outright basis, according to Trace data. LinkedIn shares gained $3.20, or 1.7%, to $192.41.

SunEdison Inc.’s multiple convertible issues were said to be up as much as 2 points as shares of the St. Peters, Mo.-based solar technology company popped following the announcement of a proposed series of actions to align its businesses with current and future market opportunities and accelerate cash flow positive operations.

SunEdison said it is going to focus such core, high profit-potential markets as the United States, India, China and Latin America. It will also simplify its business structure by centralizing and consolidating operations following recent acquisitions.

SunEdison’s 2.375% convertible notes due 2022 jumped nearly 4 points to 60. SunEdison shares were last up 71 cents, or 8.5%, at $8.98.

SunEdison will hold an investor presentation early Wednesday.

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