Morning Commentary: Advanced Energy convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Oct. 2 – The convertibles primary market was quiet early Monday with sources expecting a lull in activity with issuers in earnings season blackouts.

However, the primary market is expected to see an active fourth quarter with the higher-for-longer rate scenario making the convertibles market an attractive place for a capital raise to meet growing refinancing needs.

Meanwhile, the secondary space was equally quiet early Monday with equity markets mixed as Treasury yields resumed their climb.

The Dow Jones industrial average was down 112 points, or 0.33%, the S&P 500 index was down 0.09%, the Nasdaq Composite index was up 0.57% and the Russell 2000 index was down 1.08% shortly before 11 a.m. ET.

There was $45 million in reported volume about one hour into the session with few names seeing concentrated trading activity.

Advanced Energy Industries Inc.’s 2.5% convertible notes due 2028 were among the most actively traded issues early in the session although with little movement in price.

The notes were changing hands at 101.5 versus a stock price of $103.66, according to a market source.

There was $5 million in reported volume.

Advanced Energy’s stock launched the day in the green but was seen at $102.68, a decrease of 0.43%, shortly before 11 a.m. ET.

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