Morning Commentary: Akamai convertible notes active in early trading, brush against par

By Abigail W. Adams

Portland, Me., Aug. 29 – The convertibles secondary space remained quiet early Tuesday although there was an uptick of activity compared to the previous session as equity indexes extended their gains on the heels of an unexpectedly weak JOLTs report.

The Dow Jones industrial average was up 54 points, or 0.16%, the S&P 500 index was up 0.64%, the Nasdaq Composite index was up 1.15% and the Russell 2000 index was up 0.73% shortly before 11 a.m. ET.

There was $48 million in reported volume about one hour into the session although few names saw concentrated trading activity.

Akamai Technologies Inc.’s recently priced 1.125% convertible notes due 2029 were among the most actively traded issues early in the session with the notes trading just shy of par.

The notes were marked at 99.875 versus a stock price of $103 early in the session, according to a market source.

There was $6 million in reported volume.

Akamai’s stock was changing hands at $103.36, an increase of 0.19%, shortly before 11 a.m. ET.

Akamai’s convertible notes have made steady outright gains over the past three sessions after trading to a 98-handle late last week.

The secondary performance of the notes was a disappointment to many with the notes flat to contracted dollar-neutral, a product of their tight pricing.

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