Morning Commentary: Advanced Energy convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Sept. 15 – The convertibles secondary space stood poised for a quiet session on Friday with equity markets opening the day in the red after a seesaw week.

The latest Consumer Price Index report did little to provide an uncertain market with direction with all eyes now on the Fed’s upcoming announcement on Sept. 20.

While markets widely anticipate a pause in rate hikes, the announcement will be scoured for clues about the Fed’s plans in November and December.

The Dow Jones industrial average was down 219 points, or 0.63%, the S&P 500 index was down 0.97%, the Nasdaq Composite index was down 1.35% and the Russell 2000 index was down 0.74% shortly before 11 a.m. ET.

While trading volumes were muted, several recent convertible bond issues were on the tape.

Advanced Energy Industries Inc.’s 2.5% convertible notes due 2028 were active early in the session with the notes lower outright on a weak day for stock.

The 2.5% notes were off about 1 point outright as stock fell about 2%.

The notes were changing hands at 101.875 early in the session, according to a market source.

There was $4 million in reported volume.

Advanced Energy’s stock was down $104.43, a decrease of 2.10%, shortly before 11 a.m. ET.

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