Morning Commentary: Convertibles poised to round out week quietly; Wix.com tops par

By Abigail W. Adams

Portland, Me., July 6 – While trading volume saw a marked increase from early Thursday, the convertibles space remained quiet on Friday.

There was about $50 million on the tape early in the session although few names saw more than $3 million bonds trade, a market source said.

“Basically, it’s a lot of million here, million there trades,” the source said.

Wix.com Ltd.’s 0% convertible notes due 2023 were the most active of the morning with $5 million on the tape early in the session. The notes were seen trading north of par early on Friday with stock up to $105.50.

The notes have largely traded below par since hitting the market on June 22, and at one point traded as low as 97.5 on an outright basis. While down outright, the notes have largely moved in line dollar neutral.

The notes broke par on July 3 and have traded above since, a market source said.

“It’s all about the stock with this one,” the source said. With a premium of 36%, the notes move on a high delta, the source said.

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