Morning Commentary: Sarepta convertible notes continue to gain on quiet morning

By Abigail W. Adams

Portland, Me., Sept. 19 – There was a lull in convertibles secondary market activity on Monday after the previous week’s burst of new issuance sparked heavy trading volume in the space.

While the market was off to a slow start on Monday as equities struggled to find direction, Sarepta Therapeutics Inc.’s new 1.25% convertible notes due 2027 remained in focus with their upward momentum continuing.

Equity indexes fought back from a low open to turn positive early in the session. However, they gave back much of their gains and were either side of unchanged shortly before 11 a.m. ET.

The Dow Jones industrial average was up 54 points, or 0.17%, the S&P 500 index was up 0.13%, the Nasdaq Composite index was up 0.10% and the Russell 2000 index was flat.

There was $37 million of convertible bond trading volume on the tape about one hour into the session with no name seeing more than $5 million in reported volume.

Sarepta’s 1.25% convertible notes gained 1.25 points outright as stock wavered between gains and losses.

The 1.25% notes were trading at 105.25 versus a stock price of $112.08 early in the session, according to a market source.

There was $4 million in reported volume.

Sarepta’s stock opened in the red but was trading at $113.73, an increase of 1.55%, shortly before 11 a.m. ET.

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