Morning Commentary: Innoviva convertible notes in focus early on quiet morning

By Abigail W. Adams

Portland, Me., Feb. 15 – It was another quiet morning in the convertibles secondary space as equities broke their rout as tensions appeared to diminish over Ukraine.

The Dow Jones industrial average was up 463 points, or 1.34%, the S&P 500 index was up 1.48%, the Nasdaq Composite index was up 1.88% and the Russell 2000 index was up 1.83% shortly before 11 a.m. ET.

There was $76 million in reported volume about one hour into the session with an off-the-run issue in focus.

Innoviva Inc.’s 2.5% convertible notes due 2025 were active early Tuesday.

The 2.5% convertible notes were changing hands at 132.5 versus a stock price of $19.83 early in the session.

They were trading at about a 15-point premium to parity, a source said.

There was $7.5 million in reported volume.

Innoviva’s stock was wavering between gains and losses early in the session.

The shares traded as high as $20.10 before coming in to trade at $19.62, a decrease of 0.48%, shortly before 11 a.m. ET.

While the stock was negative early Tuesday, it has risen about 24% since the biotech company reported earnings last week.

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