| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for BridgeBio Pharma Inc. > News item |
Morning Commentary: BridgeBio convertible notes skyrocket outright on clinical trial
By Abigail W. Adams
Portland, Me., March 6 – It was a relatively quiet start to the week with the convertibles primary market quiet pre-open and the flurry of trading activity surrounding recent issues in the secondary space settling.
Equity indexes were mixed to start the week with the tech-heavy Nasdaq continuing to add to the strong gains of the previous session while small cap stocks underperformed.
The Dow Jones industrial average was up 138 points, or 0.41%, the S&P 500 index was up 0.68%, the Nasdaq Composite index was up 1.00% and the Russell 2000 index was down 0.22% shortly before 11 a.m. ET.
There was $85 million in reported volume about one hour into the session with topical news pushing BridgeBio Pharma Inc.’s 2.25% convertible notes due 2029 into the spotlight.
BridgeBio’s distressed 2.25% convertible notes due 2029 skyrocketed on an outright basis as stock jumped 60% following positive results from a clinical trial.
The 2.25% convertible notes jumped 15 points outright.
They were changing hands at 56 versus a stock price of $17.77 early in the session.
The yield was about 13.25%, a source said.
There was $15 million in reported volume.
The notes have long been in distressed territory.
They were trading at 40 heading into Monday’s session after recovering from an all-time low of 33 in late January.
While the notes mostly trade for their yield, the theoretical delta was 100% heading into Monday’s session, although accounts played the notes differently, a source said.
The notes were moving on a 60% to 65% delta early in the session.
BridgeBio’s stock was seen at $17.61, an increase of 62.01% shortly before 11 a.m. ET.
Stock skyrocketed after the biopharmaceutical company announced positive results from a clinical trial for a treatment for disproportionate dwarfism.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.