Morning Commentary: Duke Energy gains continue in heavy volume

By Abigail W. Adams

Portland, Me., April 6 – The convertible primary and secondary markets were dominated by one name throughout the course of the holiday-shortened week – Duke Energy Corp.

Duke Energy’s $1.5 billion offering of 4.125% convertible notes due 2026 was the sole deal to clear the primary market over the course of the week.

However, the chunky offering lifted the April 3 week to the fourth heaviest week of the year for new issuance.

While the pace of new issuance is expected to be subdued as earnings season commences, an active pipeline is expected with offerings in the works, sources said.

Meanwhile, Duke Energy’s 4.125% convertible notes continued to dominate activity in an otherwise quiet secondary space.

The notes were again adding to their gains on a down day for equities and a relatively flat day for Treasuries.

The Dow Jones industrial average was down 121 points, or 0.40%, the S&P 500 index was down 0.34%, the Nasdaq Composite index was down 0.36% and the Russell 2000 index was down 0.15% shortly before 11 a.m. ET.

Duke Energy’s 4.125% convertible notes gained 0.25 to 0.375 point outright.

They were wrapped around 102 in early trade, according to a market source.

There was about $30 million in reported volume.

Duke Energy’s stock was changing hands at $98.95, an increase of 0.11%, shortly before 11 a.m. ET.

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