Morning Commentary: Fortive convertibles continue to dominate; Aegerion yield tops 91%

By Abigail W. Adams

Portland, Me., March 4 – The convertible secondary space was off to a slow start early in Monday’s session with few notable movements, a market source said.

There were about $79 million of bonds on the tape a little over one hour into the session with Fortive Corp.’s 0.875% convertible notes due 2022 continuing to dominate trading activity.

The notes were changing hands around 105.125. More than $21 million of the bonds were on the tape early in the session.

Fortive stock was up slightly on Monday. Stock was $83.05, an increase of 0.59%, shortly before 11 a.m. ET.

“These notes are always going to trade and they’re always going to trade rich,” a market source said.

Volume was light outside of Fortive’s convertible notes with few names seeing more than $4 million of bonds changing hands.

Aegerion Pharmaceuticals Inc.’s 2% senior notes due Aug. 15, 2019 saw some action early in Monday’s session with the notes changing hands at 71.75.

The notes were trading with a yield to maturity of 91.75%, a market source said. “I think there might be some issues.”

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