Morning Commentary: Convertible market slightly weaker to start session; Citrix falls on CEO news

By Stephanie N. Rotondo

Seattle, July 11 – Trading in the convertible space was picking up a bit on Tuesday, though there was an overall negative tone to the market.

As of mid-morning, about $81.5 million in trades had occurred, according to a market source. That compared to about $42 million the day before.

Of the more active names, Citrix Systems Inc.’s 0.5% convertible notes due 2019 were trading off 1.25 points to around 119.5, a source said.

The company’s stock (Nasdaq: CTXS) was also lower in early dealings, falling 93 cents, or 1.16%, to $79.00.

The weakness came as it was reported that David Henshall had taken over the role of chief executive officer.

Henshall is the company’s fourth CEO since 2015. He was previously the chief financial and operating officer.

Meanwhile, Vipshop Holdings Ltd.’s 1.5% convertible notes due 2019 were moving around the 98.5 mark.

A trader noted that there were more sellers than buyers for the paper, adding that at current levels, there is a 2.42% yield to maturity.

“Maybe people expect [buyers] to bid for them,” the trader said of the convertibles. “[The company] had a put back in March at par, with only $3 million being put back. The stock is lower now and the bonds were trading 101-ish back then.”

As for the stock (NYSE: VIPS), it was up more than 2% at mid-morning on no fresh news.

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