Morning Commentary: Convertibles trading volume light; recent deals unchanged early

By Abigail W. Adams

Portland, Me., Sept. 10 – Trading volume in the convertibles secondary space was light on Monday with several places at half-staff as many observe the Jewish New Year.

The deals that priced last week were either not seen on the tape or unchanged from their previous levels in light volume.

Infinera Corp.’s 2.125% convertible notes due 2024 were not seen on the tape early in Monday’s session, according to a market source.

The new paper closed Friday just under par and was expanded about 2 points dollar-neutral.

The manufacturer of optical transmission equipment priced an upsized $350 million of the notes prior to the market open on Friday.

Perficient Inc.’s 2.375% convertible notes due 2023 were unchanged in light trading early in Monday’s session, a market source said.

After a sloppy secondary market debut on Sept. 6, the 2.375% notes closed Friday around par but remained largely flat on a dollar-neutral, or hedged, basis.

Retrophin Inc.’s 2.5% convertible notes due 2025 were also not active early Monday. The notes have performed well in the secondary space since their Sept. 6 debut.

They were last seen trading with a 103 handle and were expanded about 3 points dollar-neutral.

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