Morning Commentary: Convertibles secondary ‘deathly quiet’; Ford notes improve early

By Abigail W. Adams

Portland, Me., April 8 – The convertibles secondary space was “deathly quiet” early Monday with little news to jumpstart activity on a flat open for markets, a source said.

Equity indexes were either side of unchanged as Treasury yields crept higher with market players beginning to reassess the likelihood of a June rate cut.

The Dow Jones industrial average was up 66 points, or 0.17%, the S&P 500 index up 0.23%, the Nasdaq Composite index was up 0.33% and the Russell 2000 index was up 0.33% shortly before 11 a.m. ET.

There was $27 million in reported volume about one hour into the session with no name seeing more than $3 million in reported volume.

Ford Motor Co.’s 0% convertible notes due 2026 (Ba1/BBB-) were among the most actively traded issues early in the session with $3 million on the tape.

The notes were moving higher on a strong open for stock.

The convertibles added about 0.5 point outright with stock up 1.5%.

The notes were trading at 104.5 versus a stock price of $13.49 early in the session, a source said.

Ford’s stock was trading at $13.48, an increase of 1.62%, shortly before 11 a.m. ET.

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