Morning Commentary: Duke Energy, PG&E convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Jan. 3 – The convertibles secondary space saw another slow start to the day on Wednesday as markets continued to give back gains from the late year rally of 2023.

The Dow Jones industrial average was down 289 points, or 0.76%, the S&P 500 index was down 0.74%, the Nasdaq Composite index was down 0.91% and the Russell 2000 index was down 1.69% shortly before 11 a.m. ET.

There was $54 million in reported volume about one hour into the session.

However, activity was concentrated in two issues with Duke Energy Corp.’s 4.125% convertible notes due 2026 (Baa2/BBB) and PG&E Corp.’s 4.25% secured convertible notes due 2027 accounting for nearly half of the activity in the space.

Duke Energy’s 4.125% convertible notes due 2026 were unchanged early in the session.

The notes were changing hands at 100.375 with stock in the green.

There was $15 million in reported volume.

Duke Energy’s stock was trading at $98.36, an increase of 0.56%, shortly before 11 a.m. ET.

PG&E’s 4.25% convertible notes due 2027 were also largely unchanged in active trade.

The notes were trading just north of 104.75 versus a stock price of $17.99 early in the session.

There was $9 million in reported volume.

PG&E’s stock was trading at $18.01, a decrease of 0.22%, shortly before 11 a.m. ET.

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