Intel moves up; WaMu regains ground; Thornburg closes higher; Countrywide ends day mixed

By Evan Weinberger

New York, Dec. 24 - Intel Corp. convertibles moved higher. Washington Mutual Inc. preferreds regained some ground. And Thornburg Mortgage Inc. was up on the day while Countrywide Financial Corp. ended Monday mixed.

But activity in the convertibles market was extremely light Monday. A trader said there was some last-minute holiday shopping in small converts "but no one cares today."

"There's nothing. There's just nothing," an analyst added. "This is like a day that didn't happen."

No new issues came to market Monday, and none were announced.

Even as market players awaited Santa's arrival Monday night, commerce marched on. The New York Stock Exchange enforced its policy of never being closed for four consecutive days, and the market moved lightly up to the early 1 p.m. close. "It's a macho thing," one market watcher said. "They brag about the fact that they're not closed four days."

The Dow Jones Industrial Average closed at 13,549.33, a gain of 98.68, or 0.73%, on the day.

The Nasdaq picked up 21.51, or 0.80%, for a 2,713.50 close.

And the Standard & Poor's 500 closed at 1,496.45, a gain of 11.99 points, or 0.81%.

Markets were buoyed by word that Merrill Lynch had secured up to $6.2 billion in private financing from Temasek Holdings, the sovereign equity fund of the Singapore government, and American mutual fund manager Davis Selected Advisors.

Merrill Lynch also announced the sale of the corporate finance, equipment finance, franchise, energy and healthcare finance units to General Electric's finance unit for around $1.3 billion Monday.

While the news of the deals didn't create all that much buzz - neither was unexpected nor particularly unusual - a trader said he had heard of some activity off of the news. "MER sounds like a good deal on both accounts, although I just had a very smart financial sector hedge fund shorting it," he said.

Intel moves up

Santa Clara, Calif.-based semiconductor producer Intel saw its 2.95% convertible notes due Dec. 15, 2035 close Monday at 109.507 versus a closing stock price of $27.31 in light trading. They closed Friday at 108.152 versus $26.96.

Intel stock (Nasdaq: INTC) picked up 35 cents, or 1.30%, on the day.

Washington Mutual regains turf

Seattle-based savings and loan Washington Mutual watched its 7.75% series R non-cumulative perpetual convertible preferred stock regain some of the ground they lost last week in the face of a Securities and Exchange Commission investigation into the company's home appraisal practices.

The Washington Mutual preferreds closed Monday at 900 versus a closing stock price of $14. They closed Friday at 889.87 versus $14.10.

Washington Mutual stock (NYSE: WM), on the other hand, slipped 10 cents, or 0.71%, on the day.

Thornburg has solid day

Santa Fe, N.M.-based mortgage lender Thornburg, one of the finance companies that was heavily involved in subprime mortgages, had a solid day on Wall Street Monday.

The company's 7.5% convertible perpetual redeemable preferred stock closed Monday at $18.25 versus a closing stock price of $10.64. They closed Friday at $17.30 versus $9.63.

Thornburg stock (NYSE: TMA) gained $1.01, or 10.49%, Monday.

Countrywide ends day mixed

Calabasas, Calif.-based mortgage lender Countrywide's convertibles ended the day before Christmas mixed.

Countrywide's Libor minus 350 series A convertible senior debentures due April 15, 2037 closed Monday at 79.38 versus a closing stock price of $8.95. They closed Friday at 78.871 versus $8.77.

Countrywide's Libor minus 225 series B convertible senior debentures due May 15, 2037 closed Monday at 73.78 versus $8.95 after closing Friday at 74.5884 versus $8.77.

Stock in Countrywide (NYSE: CFC) gained 18 cents, or 2.05%, Monday.

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