Morning Commentary: Convertibles secondary quiet; PG&E equity units trade lower at open

By Abigail W. Adams

Portland, Me., June 29 – The convertibles secondary space saw its quietest Monday in recent history with few names on the tape early in the session.

The truncated holiday week is expected to remain quiet with many cashing in vacation days around the July 4 holiday, a market source said.

Equities were volatile early in the session with indexes mixed shortly after the opening bell.

However, the Dow Jones industrial average, S&P 500 index and Nasdaq composite were all posting gains shortly before 11 a.m. ET.

PG&E Corp.’s 5.5% equity units were among the most actively traded issues early in the session with the units continuing to sink further below par their second day in the secondary space.

The units traded as low as 94 but rebounded to change hands at 96 shortly before 11 a.m. ET.

PG&E stock traded to a low of $8.90 but was changing hands at $9.18 shortly before 11 a.m. ET.

Outside of the equity units, there was only $28 million in reported volume for convertible bonds about one hour into Monday’s session with no name in focus.

The majority of trades were $2 million or $1 million plus, a source said.

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