Morning Commentary: Convertibles trading light; Dermira improves; Encore Capital active

By Abigail W. Adams

Portland, Me., April 8 – The convertible secondary space was off to a sleepy start on Monday with about $59 million on the tape one hour into the session. Few names saw concentrated trading activity, according to a market source.

With trading activity surrounding recent issues quieting down, some off-the-run names were active early in the session.

Dermira Inc.’s 3% convertible notes due 2021 were making gains on an outright basis as stock continued its upward momentum on Monday.

The 3% convertible notes were changing hands around 91.75, according to a market source.

With $4 million in reported volume, the bonds were the most active in the secondary space early in Monday’s session.

Dermira stock traded up to $15.00, an increase of 3.02%, shortly before 11 a.m. ET.

Stock jumped more than 8% on Friday.

The biotech company’s stock has seen steady increases since mid-March when it released positive data from a phase 2 clinical trial for a treatment of a severe form of eczema.

Encore Capital Group Inc.’s 2.875% convertible notes due 2021 also saw renewed attention early Monday with almost $3 million in reported volume.

The notes were changing hands around 92. Encore Capital’s stock was $29.13, a decrease of 0.88%, shortly before 11 a.m. ET.

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