Morning Commentary: High-grade convertibles strengthen; Newmont Mining bond adds as shares fall

By Rebecca Melvin

New York, Jan. 19 – Investment-grade convertibles were trading notably in early action on Tuesday, the first day of the trading week after U.S. financial markets were closed on Monday in observance of the Martin Luther King Jr. holiday.

There were trades in Priceline Group Inc., Ares Capital Corp., Lam Research Corp. and Intel Corp. In the broader markets, high-grade bond spreads were a few basis points tighter and equities were higher. But crude oil prices were lower.

There was not much trading, but it seemed that most investment-grade names were trading in a flight-to-safety trade, a New York-based trader said.

Newmont Mining Corp.’s 1.625% convertibles traded in size on Tuesday at 98.75, compared to being offered on Friday at 98.25.

Shares of the Greenwood Village, Colo.-based gold and copper miner were down $1.22, or 7%, to $16.47 early Tuesday after trading higher on Friday with higher gold prices.

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