Morning Commentary: DISH convertible notes gain on renewed merger talk

By Abigail W. Adams

Portland, Me., Jan. 12 – The convertibles secondary space was quiet early in Wednesday’s session with equity indexes mixed following the release of the closely watched Consumer Price Index report.

While the report indicated the fastest growth of consumer prices since 1982, the 7% year-over-year increase was widely anticipated.

Equity markets surged at the open, but they pared their gains as the session progressed.

The Dow Jones industrial average was up 35 points, or 0.10%, the S&P 500 index was up 0.17%, the Nasdaq Composite was up 0.09% and the Russell 2000 index was down 0.44% shortly before 11 a.m. ET.

DISH Network Corp.’s 0% convertible notes due 2025 were in focus early in the session with the notes making large gains on an outright and dollar-neutral basis.

The 0% notes rose about 4 points outright with stock up more than 4%.

The notes were changing hands at 107.5 bid, 108 offered early in the session.

They expanded about 1 point dollar-neutral, a source said.

DISH’s stock was changing hands at $36.88, an increase of 4.24%, shortly before 11 a.m. ET.

Stock jumped on news that DirecTV and DISH were once again discussing a potential merger.

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