Morning Commentary: Convertibles mostly name driven; Medicines trading action in focus

By Rebecca Melvin

New York, Aug. 30 – The U.S. convertibles market was mostly “name driven” early Wednesday as market players eyed month end on Thursday and the upcoming Labor Day holiday expected to reduce market activity heading into the weekend.

Medicines Co.’s convertibles were in focus and were initially trading better before moving back to about the unchanged mark, a New York-based convertibles sellsider said.

Shares of the Parsippany, N.J.-based biopharmaceutical company also slipped in early trading after jumping in the premarket after the company announced that the Food and Drug Administration has approved its injection for adults with complicated urinary tract infections, including kidney infection. The injection, Vabomere, is a drug containing meropenem, an antibacterial, and vaborbactam, which inhibits certain types of resistance mechanisms used by bacteria.

The Medicines 2.75% convertible notes due 2023 jumped up to about 106.50 bid, 106.875 offered, which was up at least a couple of points from many prints on Tuesday. The Medicines 2.5% convertible due 2022 was up at 132.6 early Wednesday, compared to Tuesday’s close at 131.3, according to Trace data.

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