Morning Commentary: Bentley Systems convertible notes in focus early, improve outright

By Abigail W. Adams

Portland, Me., June 28 – It was another slow start in the convertibles secondary space on Monday with volume light despite large movements in the equities of some convertibles issuers.

Equity benchmarks were again mixed with the Nasdaq Composite and S&P 500 setting new highs while the Dow Jones industrial average wallowed in negative territory.

There was $75 million in reported volume a little over one hour into Monday’s session with few names seeing more than $5 million in reported volume.

Bentley Systems Inc.’s 0.375% convertible notes due 2027, the most recent convertible bond to price, was the most active name in the secondary space.

The 0.375% notes were improved slightly on an outright basis. They were changing hands at 100.375 versus a stock price of $60.83 early in the session, according to a market source.

There was more than $5 million of the bonds on the tape.

Bentley Systems’ stock was changing hands at $62.16, an increase of 2.15%, shortly before 11 a.m. ET.

The notes have been volatile on an outright basis alongside stock and closed out last Friday wrapped around par, sources said.

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