Morning Commentary: Ventas Realty exchangeable notes active early, rise with stock

By Abigail W. Adams

Portland, Me., June 16 – It was a quiet start to what promises to be a ho-hum day in the convertibles secondary space as the liquidity thins ahead of the holiday weekend in the United States.

Equities were mixed early in the session as markets continued to digest the Fed announcement and attempt to gage the future trajectory of rates.

The Dow Jones industrial average was up 46 points, or 0.13%, the S&P 500 index was up 0.12%, the Nasdaq Composite index was down 0.12% and the Russell 2000 index was down 0.63% shortly before 11 a.m. ET.

There was $63 million in reported convertible bond trading volume about one hour into the session with few names seeing concentrated trading activity.

Ventas Realty, LP’s 3.75% exchangeable notes due 2026 (Baa1/BBB+) continued to see heavy volume with the notes gaining outright alongside stock.

The 3.75% exchangeable notes were changing hands at 102.125 versus a stock price of $46.58 early in the session, according to a market source.

There was $8 million in reported volume.

Ventas’ stock was trading at $46.77, an increase of 1.39%, shortly before 11 a.m. ET.

The notes have been volatile in active trade over the course of the week.

They briefly dropped to par on Wednesday as markets priced in a more aggressive move by the Fed than anticipated but recovered as markets stabilized.

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