Morning Commentary: Ormat convertible notes add to gains on otherwise quiet morning

By Abigail W. Adams

Portland, Me., July 26 – It was another quiet morning in the convertibles secondary space with equity indexes opening in the red on the back of the latest batch of earnings.

Earnings results have been mixed contributing to a highly uncertain market awaiting another historic rate hike from the Federal Reserve on Wednesday.

The Dow Jones industrial average was down 115 points, or 0.36%, the S&P 500 index was down 0.85%, the Nasdaq Composite index was down 1.48% and the Russell 2000 index was down 0.63% shortly before 11 a.m. ET.

There was $50 million on the tape about one hour into the session with few names seeing concentrated trading activity.

Ormat Technologies Inc.’s 2.5% convertible notes due 2027, one of the most recent new issues in the market, saw some activity with the notes continuing to rise on an outright basis.

The 2.5% convertible notes gained 1.5 points outright with stock up 1% early in the session.

The notes were trading at 111.5 versus a stock price of $82.46, according to a market source.

There was $4 million in reported volume.

Ormat’s stock was changing hands at $82.67, an increase of 1.04%, shortly before 11 a.m. ET.

Ormat has made strong gains since the $431 million issue priced at par on June 22.

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