Morning Commentary: ConMed convertible notes in focus early, trade down outright

By Abigail W. Adams

Portland, Me., June 8 – It was a relatively quiet start to the day in the convertibles secondary space on Wednesday with equity markets choppy as the 10-year Treasury yield again pushed past the 3% threshold.

The Dow Jones industrial average was down 171 points, or 0.52%, the S&P 500 index was down 0.43%, the Nasdaq Composite index was up 0.02% and the Russell 2000 index was down 0.63% shortly before 11 a.m. ET.

There was $100 million in reported volume about one hour into the session with one name dominating the tape.

ConMed Corp.’s recently priced 2.25% convertible notes due 2027 remained in focus with the notes continuing to come in on an outright basis alongside stock after skyrocketing on debut.

The 2.25% notes were changing hands just shy of 101 versus a stock price of $110.68 early in the session.

There was $17 million in reported volume.

ConMed’s stock was volatile alongside broader markets early Wednesday.

Stock briefly entered into positive territory and traded as high as $111.25 before sinking back into the red.

Stock was changing hands at $108.89, a decrease of 1.74%, shortly before 11 a.m. ET.

ConMed’s 2.25% convertible notes traded as high as 105 on their market debut on June 2. However, the notes have given back much of their outright gains with stock coming in alongside broader markets.

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