Morning Commentary: Equity indices continue three-day run; convertibles primary quiet

Chicago, July 20 – Equity indices were positive again on Wednesday morning, marking three days of stability for stocks.

No convertible bond offering was announced in the early session on Wednesday.

Worth noting, but quiet on Wednesday morning, infrequent trader KBR Inc. was on the tape throughout the day on Tuesday after Credit Suisse analysts assigned a $66.00 price target to the company’s stock.

This helped push the stock of the Houston-based security and defense company’s shares up a couple of dollars. The company’s stock was trading just above $50.00 per share on Wednesday morning.

Relatedly, the company’s 2.5% convertible bonds due 2023 jumped approximately 6 points to close on Wednesday above 198.

The conversion ratio for the bonds, which priced in November 2018 when stock was $20.01 per share, is 39.1961.

Keeping an eye on Southwest Airlines Co.’s 1.25% convertibles due 2025 (Baa1/BBB), a few large trades were on the tape by mid-morning, but prices were mostly flat with the bonds hovering in the 130 area.

Stock also seemed to be leveling off, with shares up 0.024% to $41.50 just before noon ET.

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