Morning Commentary: Convertibles trading opens thin; ON Semiconductor, NextEra active

By Rebecca Melvin

New York, Oct. 15 – Trading activity in the convertibles secondary space was light on Tuesday with a rise in equities as earnings season got underway with mixed results from the big banks.

JPMorgan Chase beat estimates, but Goldman Sachs Group reported a drop in earnings and missed estimates.

ON Semiconductor Corp.’s convertible notes gained in tandem with higher shares. The ON 1.625% convertible notes due 2023 traded at 121.8, which was up from 119.5 on Monday, according to Trace data, with shares up 3%.

Inphi Corp.’s 0.75% convertibles due 2021 changed hands at 130 on Tuesday, which was up from 127 on Monday, with shares of the Westlake Village, Calif.-based semiconductor maker up nearly 4% in the early going.

Among mandatory issues, NextEra Energy Inc.’s 4.872% bonds were the most active. But activity was pretty light overall, a New York-based market source said.

“Bonds are quiet,” the source said.

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