Morning Commentary: Convertibles trading quiet; end-of-quarter clean-up dominates tape

By Abigail W. Adams

Portland, Me., July 1 – It was a quiet start to the third quarter in the convertibles secondary space with accounts cleaning up their books continuing to dominate the tape.

While the overall market was quiet, there were some large prints on the tape lifting the overall reported volume to $72 million.

Southwest Airlines Co.’s 1.25% convertibles due 2025 (Baa1/BBB) and Booking Holdings Inc.’s soon-to-mature 0.9% convertible notes due Sept. 15, 2021 were the most active names in the secondary space.

Southwest’s 1.25% convertible notes due 2025 were changing hands at 153.5 versus a stock price of $54.35.

There was $5 million in reported volume about one hour into the session.

Southwest’s stock was changing hands at $54.09, an increase of 1.82%, shortly before 11 a.m. ET.

There was $4.5 million in reported volume.

Booking’s 0.9% convertible notes due 2021 were changing hands at 109.5 versus a stock price of $2,192.50.

Booking’s stock was changing hands at $2,207.06, an increase of 0.87%, shortly before 11 a.m. ET.

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