Morning Commentary: Snap, Beyond Meat convertible notes in focus early, drop outright

By Abigail W. Adams

Portland, Me., Oct. 22 – There was an uptick of activity in the convertibles secondary space on Friday as earnings-related volatility hit some outstanding issues.

Snap Inc.’s 0% convertible notes due 2027 and Beyond Meat Inc.’s 0% convertible notes due 2027 were in focus with both notes dropping on an outright basis as the companies saw their stock drop double digits.

Snap’s 0% convertible notes due 2027 dropped more than 10 points outright as stock tanked more than 20% on the heels of a disappointing earnings report.

The 0% convertible notes were changing hands at 106.25 early in Friday’s session.

Snap’s stock was trading at $57.72, a decrease of 23.22%, shortly before 11 a.m. ET.

Stock tanked after the company reported mixed earnings post-close and issued dire warnings about the impact of Apple iPhone’s new privacy policy and supply chain bottlenecks.

Beyond Meat’s 0% convertible notes were also under pressure after the plant-based food company slashed its third-quarter revenue guidance prior to its earnings.

The 0% notes dropped about 4 points outright with stock down 13%.

The 0% notes were changing hands at 83.5 early in Friday’s session.

Stock was changing hands at $94.80, a decrease of 12.89%, shortly before 11 a.m. ET.

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