Morning Commentary: Sea, Sunrun convertible notes active in early secondary trading

By Abigail W. Adams

Portland, Me., Oct. 20 – It was another quiet morning in the convertibles secondary space as equity markets extended their rally.

However, tech and growth stocks were underperforming as the 10-year Treasury yield ticked up to 1.64%.

Sea Ltd.’s 0.25% convertible notes due 2026 were again the major volume mover in the secondary space.

The notes were coming in on an outright basis as stock gave back some of its gains.

However, the notes were moving in line on a dollar-neutral, or hedged, basis, a source said.

The 0.25% convertible notes were changing hands at 107.375 early in the session.

Sea’s American Depositary Shares were trading at $360.28, a decrease of 1.84%.

Sea is a Singapore-based global consumer internet company.

Sunrun Inc.’s 0% convertible notes due 2026, an off-the-run issue that rarely trades, also made an appearance on the tape early Wednesday.

The 0% convertible notes were unchanged in the above-average trading at 88.5, a source said.

Sunrun’s stock was flat early Wednesday at $51.62.

Sunrun is a San Francisco-based residential solar panel company.

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