Morning Commentary: Rexford exchangeable notes active; MKS Instruments notes add

By Abigail W. Adams

Portland, Me., May 15 – The convertibles primary market remained dormant early Wednesday with the window of opportunity for further issuance narrowing.

However, with the highly anticipated Consumer Price Index report under the market’s belt, there still may be some announcements post-close.

There have been signs of outright selling in the secondary to make room for new paper, sources said.

Meanwhile, the secondary space remained active on Wednesday as equity indexes gained on the heels of the CPI print.

The latest inflationary data came in largely as expected with signs that inflationary pressure was easing, which was keeping hope alive for rate cuts in 2024.

Treasury yields were down about 7 basis points across the curve with indexes firmly in the green.

The Dow Jones industrial average was up 191 points, or 0.48%, the S&P 500 index was up 0.66%, the Nasdaq Composite index was up 0.72% and the Russell 2000 index was up 0.56% shortly before 11 a.m. ET.

There was $127 million in reported volume about one hour into the session.

Rexford Industrial Realty, LP’s 4.375% exchangeable notes due 2027 (Baa2/BBB+/BBB+) were the most actively traded issue early in the session with the notes continuing to improve.

They were trading at 99.375 versus a stock price of $46.42 early in the session, according to a market source.

There was $26 million in reported volume.

Rexford’s stock was trading at $45.75, an increase of 0.84%, shortly before 11 a.m. ET.

MKS Instruments Inc.’s new 1.25% convertible notes due 2030 remained active their second day in the secondary space with the notes continuing to add.

The 1.25% notes were up about 1.5 point outright with stock up over 2%.

They were trading at 104.125 versus a stock price of $126.42 early in the session.

There was $6 million in reported volume.

MKS’ stock was trading at $127.22, an increase of 2.14%, shortly before 11 a.m. ET.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.