Morning Commentary: Novavax convertibles trade with higher shares; Insmed notes eyed

By Rebecca Melvin

Concord, N.H., Oct. 7 – In the absence of new paper, the convertibles secondary market was trading in step with gains in equities on Thursday morning. Stocks were up in an apparent relief rally over favorable developments involving the U.S. debt ceiling situation.

Republican lawmakers late on Wednesday offered a short-term debt limit extension to help stave off the possibility of a government default.

Meanwhile, the convertibles market’s last new deal priced last week with the upsized $1.1 billion of 0% five-year convertible notes of SoFi Technologies Inc.

In the early going on Thursday, Novavax Inc.’s convertibles were getting attention as the underlying shares popped. The Novavax 3.75% convertibles due 2023 were seen changing hands at 145.375. Novavax’s shares were up $5.65, or 3.5%, at $167.50.

Novavax’s shares plunged in September as hopes for its Covid-19 vaccine were dashed amid an ongoing wait for regulatory approval.

Insmed Inc.’s $575 million of 0.75% convertibles due 2028 were seen trading on a move in the underlying shares. They were last at 109.75. Insmed’s shares were up 2.3% to $28.09 early Thursday.

The equities markets have seen some volatility in recent sessions amid a range of tail risks that have emerged, including the government’s debt ceiling impasse and concerns regarding China’s economy.

© 2015 Prospect News.
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