Convertibles trade in line on swap; profit taking strikes a few names; Insulet drops with shares

By Rebecca Melvin

New York, Sept. 9 – Convertibles traded quietly on Monday with valuations basically unchanged on the day as U.S. stocks trended to the upside initially and then ended little changed.

There was some profit taking seen in specific names, but the pricing there looked to be in line on a dollar neutral basis as well, according to a New York-based market source.

Names that were hit by profit taking included Neurocrine Biosciences Inc.’s 2.25% convertible notes due 2024 was seeing profit taking with the shares of the San Diego-based biopharmaceutical company up $1.03, or 1%, at 100.01 in the early going; and the 4.375% convertibles of Blackstone Mortgage Trust Inc. were also said to see people trimming, with shares up 22 cents, or 0.6%, at $35.58; and a third name was Ionis Pharmaceuticals Inc., with shares of that company down $1.00, or 1.6% at $60.75.

Elsewhere, Insulet Corp.’s 0.375% convertibles due 2026, which debuted in the market last week, fell to a 95 handle, after changing hands early in the session at 98.25 and 97.769, compared to right around 98 on Friday, according to Trace data.

That issue was one of the strongest performers last week, but Insulet shares fell on Monday by $9.63, or 0.6%, to $147.38.

It was “a typical Monday,” in the convertibles market, in a generally quiet session for stocks, market sources said.

The S&P 500 stock index ended little changed, inching down less than 0.1% to 2978.43, while the Nasdaq Composite fell 15.64 points, or 0.2%, to 8087.44.

Treasury yields rose in the session with the yield on the 10-year Treasury benchmark seen last at 1.643% compared to a 1.556% close on Friday.

Mentioned in this article:

Blackstone Mortgage Trust Inc. Nasdaq: BXMT

Insulet Corp. Nasdaq: PODD

Ionis Pharmaceuticals Inc. Nasdaq: IONS

Neurocrine Biosciences Inc. Nasdaq: NBIX

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