Morning Commentary: Secondary rides post-Fed surge; Evergy pushes higher

By Abigail W. Adams

Portland, Me., Dec. 14 – The convertible secondary space had a strong start to the day on Thursday as markets continued to roar in the wake of the Federal Open Market Committee’s projection for rate cuts in 2024.

Equity indexes added to their strong gains from the previous session as Treasury yields continued to fall.

The Dow Jones industrial average was up 64 points, or 0.19%, the S&P 500 index was up 0.26%, the Nasdaq Composite index was up 0.20% and the Russell 2000 index was up 2.32% shortly before 11 a.m. ET.

Treasuries continued to rally with the 2-year yield falling 5 basis points to 4.885% and the 10-year falling 8 bps to 3.938%.

Investment-grade convertible notes continued to rally with rate move.

Evergy Inc.’s recently priced 4.5% convertible notes due 2027 (BBB) continued to dominate the tape with the notes hitting a new all-time high.

The notes added 0.5 point outright with stock up a little more than 1.5%.

They were changing hands just shy of 103.75 early in the session, according to a market source.

There was $23 million in reported volume.

Evergy stock was trading at $54.26, an increase of 1.74%, shortly before 11 a.m. ET.

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