Morning Commentary: Volatility in equities continues; Insulet convertible notes pop

By Abigail W. Adams

Portland, Me., Jan. 28 – It was another active start to the day in the convertibles secondary space on Friday as equity markets wavered between gains and losses.

While indexes launched the day in negative territory, they were mixed shortly before 11 a.m. ET with small cap stocks continuing to underperform.

The Dow Jones industrial average was down 70 points, or 0.21%, the S&P 500 index was up 0.31%, the Nasdaq Composite was up 0.78% and the Russell 2000 was down 0.90% shortly before 11 a.m. ET.

There was $102 million in reported convertible bond trading volume about one hour into the session.

Insulet Corp.’s 0.375% convertible notes due 2026 were active early in the session with the notes popping on an outright basis as stock surged following earnings.

The 0.375% notes rose 6 points outright with stock up more than 11%.

The notes were changing hands at 116.5 versus a stock price of $212.97 early in the session.

There was $6 million in reported volume.

Insulet’s stock was changing hands at $219.70, an increase of 12.78%, shortly before 11 a.m. ET.

The medical device company’s stock popped after it announced the U.S. Food and Drug Administration had approved its automated insulin delivery system.

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