Morning Commentary: Convertibles ‘not moving’ in early trading; Exact Sciences loses footing

By Abigail W. Adams

Portland, Me., Jan. 22 – The convertibles space was quiet early Monday, a lack of activity sources attributed more to general market conditions than the government shutdown.

“The market is not really moving. The stock market is not really moving. It’s just sitting flat,” a market source said. “It really takes the fun out of it when nothing moves.”

Even the recent deals that brought new paper into the market were slow to change hands early in Monday’s session.

After showing signs of a rebound late last week, Exact Sciences Corp.’s recently priced 1% convertible notes due 2025 slumped back into the 96 to 97 range.

The $690 million deal, which priced on Jan. 11 with an issue price of 98.75, hit the market strong on their debut but dropped about 5 points on their third trading day last Wednesday to the 96 to 97 range.

The notes showed signs of recovery on an outright basis and broke par in scattered trades last Thursday and Friday. However, Exact Sciences notes closed Friday’s session around 97.

The notes traded at 96.875 early on Monday, according to Trace data. Exact Sciences stock was up in early trades to $48.72, an increase of 1.88%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.