Morning Commentary: Convertibles trade mildly as stocks rally; DISH Network adds with shares

By Rebecca Melvin

New York, Oct. 18 – U.S. convertibles saw muted trade early Wednesday and no new-issue deals were announced as stock markets rallied.

The U.S. stock indexes have been on fire, with the Dow Jones industrial average surging 137 points, or 0.6%, to 23,135 in the early going as third-quarter earnings season has gotten off to a strong start.

About 80% of the S&P 500 companies that have reported quarterly results so far have beat analyst estimates.

Convertibles mostly moved with shares, leaving valuations largely unchanged, a New York-based trader said.

Early Wednesday, DISH Network Corp.’s 3.375% convertibles due 2026 were trading actively and a bit higher in tandem with their higher underlying shares. The DISH convertibles were at 106.8, up from 105.6 on Tuesday, according to Trace data. Shares of the Englewood, Colo.-based cable company were climbing and up last by 99 cents, or 2%, at $49.84.

Issuers of convertibles reporting earnings after the market close on Wednesday include Kinder Morgan Inc., Crown Castle International Corp. and SL Green Corp.

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