Morning Commentary: Alliant Energy convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Jan. 12 – The convertibles secondary space saw a quiet start to the day on Friday with equity markets mixed after the latest piece of inflationary data and the launch of earnings.

Cracks were beginning to show in the economy with Citigroup announcing mass layoffs alongside disappointing earnings.

However, the latest Producer Price Index report showed a faster decline in wholesale prices than expected, supporting the market’s rate cut expectations.

The Dow Jones industrial average was down 221 points, or 0.59%, the S&P 500 index was down 0.22%, the Nasdaq Composite index was down 0.23% and the Russell 2000 index was up 0.24% shortly before 11 a.m. ET.

There was $68 million in reported volume about one hour into the session with one name accounting for nearly one-quarter of the total volume in the space.

Alliant Energy Corp.’s 3.875% convertible notes due 2026 (BBB+) saw heavy volume early in the session with the notes largely unchanged.

The notes were wrapped around 99 versus a stock price of $50.09 early in the session, according to a market source.

There was $16 million in reported volume.

Alliant’s stock was trading at $50.14, an increase of 0.10%, shortly before 11 a.m. ET.

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