Morning Commentary: Convertibles trading light; Cleveland-Cliffs in focus post-earnings

By Abigail W. Adams

Portland, Me., July 19 – The convertibles secondary space was again off to a slow start on Friday with activity surrounding the new deals to price over the past week slowing down.

There was about $50 million in reported volume on the tape a little over one hour into the session.

Mining names were in focus.

Cleveland-Cliffs Inc.’s 1.5% convertible notes due 2025 were among the most actively traded issues early in the session with the notes gaining alongside stock after an earnings beat.

The 1.5% notes were up more than 4 points outright to change hands at 151.375, according to a market source.

More than $6 million of the bonds were on the tape early in the session.

Cleveland-Cliffs stock was up more than 6% early in the session to change hands at $11.59.

The Cleveland-based iron ore mining company beat analyst expectations on both the top and bottom line in its second-quarter earnings report.

The company reported earnings per share of 63 cents versus analyst expectations for earnings per share of 52 cents.

The company reported revenue of $743 million, which also beat analyst expectations.

SSR Mining Inc.’s convertible notes were again active in the secondary space with holders most likely switching from one issue to another, a market source said.

The 2.5% convertible notes due 2039 were changing hands around 116.25 early in Friday’s session with about $3 million on the tape.

The 2.5% convertible notes continued to hit new heights on Friday after breaking out to a new outright high during Thursday’s session.

The 2.875% convertible notes due 2033 were changing hands at 101.875 with about $4 million on the tape, a market source said.

SSR Mining stock was $15.80, an increase of 0.38%, shortly before 11 a.m. ET.

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