Morning Commentary: Bellwether convertible issues in focus; DISH paper declines with stock

By Stephanie N. Rotondo

Seattle, July 18 – A convertible bond trader said trading volume was once again muted early Tuesday, with go-to names like Intel Corp., Priceline Group Inc. and DISH Network Corp. taking up over a third of the day’s liquidity.

For its part, DISH convertibles were following the stock lower in early dealings. While there was no credit-specific news out to cause the weakness, Netflix did release its quarterly results late Monday, showing an uptick in subscriber growth.

As for the convertible bonds, a market source saw DISH’s 2.375% notes due 2024 dipping about 0.5 point to 107.625. The 3.375% convertible notes due 2026 were off a like amount, straddling 125.

The company’s stock (Nasdaq: DISH) was down 1.18% at mid-morning.

Meanwhile, a trader noted that Novavax Inc.’s equity (Nasdaq: NVAX) was higher – by about 17.5%, in fact – though its 3.75% convertible notes due 2023 hadn’t moved much.

Still, with the biotechnology company slated to release data on a recent round of clinical trials next week, the debt could see some action.

The paper last traded in the mid-40s, according to a market source.

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