Morning Commentary: On Semiconductor active on a slow morning in secondary space

By Abigail W. Adams

Portland, Me., Aug. 2 – It was a slow start to the week in the convertible secondary space with about $35 million in reported volume about one hour into the session.

ON Semiconductor Corp.’s 0% convertible notes due 2027 were among the most actively traded issues in the secondary space with the notes posting gains alongside stock following better-than-expected second-quarter earnings reports.

The 0% convertible notes rose more than 6 points outright with stock up more than 14%.

The notes were changing hands at 112.375 versus a stock price of $43.99 early in the session.

There was about $4 million on the tape.

ON Semiconductor stock was changing hands at $44.52, an increase of 14.03%, shortly before 11 a.m. ET.

Stock surged after the semiconductor supplier beat earning expectations on the top and bottom lines.

The company reported adjusted earnings per share of 63 cents versus analyst expectations for earnings of 49 cents.

Revenue was $1.67 billion versus analyst expectations for revenue of $1.62 billion.

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