| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2023 > News item |
Morning Commentary: High-grade convertible issues dominate early secondary trading
By Abigail W. Adams
Portland, Me., April 20 – It was another quiet morning in the convertibles secondary space on Thursday with the usual suspects dominating the tape as equities dipped on weak earnings and growing credit concerns.
The Dow Jones industrial average was down 135 points, or 0.40%, the S&P 500 index was down 0.47%, the Nasdaq Composite index was down 0.36% and the Russell 2000 index was down 0.55% shortly before 11 a.m. ET.
Weak earnings from Tesla Inc. and warnings about deteriorating credit conditions from Federal Reserve officials were dragging down risk assets early Thursday.
Trading activity in the convertibles secondary space remained muted with activity concentrated in investment-grade convertible issues.
There was $105 million on the tape about one hour into the session with Duke Energy Corp.’s 4.125% convertible notes due 2026 (Baa2/BBB) accounting for more than half of the total volume in the space.
The 4.125% notes were little changed in heavy volume.
The notes were changing hands at 101.625 versus a stock price of $98.04 early in the session.
There was $60 million in reported volume.
Duke’s stock was trading at $98.17, a decrease of 0.19%, in intraday activity.
JPMorgan Chase Financial Co. LLC’s 0.25% cash-settled equity-linked notes due May 1, 2023 (A1) tied to Voya Financial, Inc. were active with their maturity days away.
The 0.25% notes were seen at 112.875 versus a stock price of $77.27 early in the session.
There were two trades on the tape and $8 million in reported volume.
The notes were active due to end-of-life trades with holders punting their position as they prepare to be taken out, a source said.
Voya’s stock was changing hands at $77.38, a decrease of 0.22%, 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.