Convertible trading light; DISH contraction continues; Chegg expands; Uber active

By Abigail W. Adams

Portland, Me., Dec. 22 – It was an uneventful day in the convertible secondary space with equities mixed and accounts occupied with end-of-year activity.

Volume remained muted with $62 million reported about one hour into the session and $431 million on the tape about one hour before the market close.

“Nothing exciting is going on and each day it’s going to get progressively slower,” a source said.

DISH Network Corp.’s 0% convertible notes due 2025 continued to dominate the tape with the notes moving lower on an outright and dollar-neutral basis.

Chegg Inc.’s 0% convertible notes due 2026 were active and expanding dollar-neutral.

Uber Technologies Inc.’s 0% convertible notes due 2025 were also among the volume movers of Tuesday’s session.

While the notes gained on an outright basis, they were down slightly dollar-neutral.

DISH down again

DISH’s 0% convertible notes due 2026 continued to trade off on an outright and dollar-neutral basis.

The 0% notes were down 2 points outright with stock off almost 3%.

The notes traded down to a 94-handle, a source said.

They were changing hands at 94.24 versus a stock price of $29.04 in the late afternoon.

The notes contracted another 0.25 point to 0.375 point dollar-neutral, a source said.

The notes continued to dominate the tape with more than $18 million in reported volume by the late afternoon.

DISH stock traded to a high of $29.89 and a low of $28.75 before closing Tuesday at $28.88, a decrease of 2.97%.

Chegg expands

Chegg’s 0% convertible notes due 2026 saw renewed attention in the secondary space with the notes expanding in active trading.

The 0% notes were changing hands just north of 114.25 versus a stock price of $93.04 in the late afternoon.

The notes, which trade predominantly on swap, expanded 0.5 point dollar-neutral, a source said.

There was more than $10.5 million in reported volume.

The notes were active “for no real reason,” a source said.

Chegg stock traded to a high of $95.20 and a low of $90.32 before closing the day at $93.89, an increase of 3.61%.

Uber gains outright

Uber’s 0% convertible notes due 2025 were also among the volume movers on Tuesday.

The notes were up outright but contracted slightly dollar-neutral, sources said.

The 0% notes traded up to 104 early in the session.

They were changing hands at 104.5 versus a stock price of $53.43 in the late afternoon.

The notes contracted about 0.125 point dollar-neutral, a source said.

Uber stock traded to a high of $54.36 and a low of $51.92 before closing the day at $53.78, an increase of 3.84%.

Mentioned in this article:

Chegg Inc. NYSE: CHGG

DISH Network Corp Nasdaq: DISH

Uber Technologies Inc. NYSE: UBER

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